Question : ____________________ refers to sale and purchase of securities in the open market by the central bank.
Option 1: Bank rate
Option 2: Repo rate
Option 3: Reverse repo rate
Option 4: Open market operations.
Correct Answer: Open market operations.
Solution : Open market operations refers to sale and purchase of securities in the open market by the central bank. Hence, Option D is correct.
Question : During deflation, it is advisable to:
Question : ____________ is the rate at which the central bank lends money to commercial banks to meet their short term needs.
Question : ________________ is the rate at which the central bank lends money to commercial banks to meet their long term needs.
Question : To reduce credit availability in the economy, the Central bank may___
Question : _____________________ refers to a method in which the central bank gives direction to other banks to give or not to give credit for certain purpose to particular sectors.
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