Question : The Central Bank may reduce Cash Reserve Ratio
Option 1: To encourage investment in the economy
Option 2: To decrease the investment in economy
Option 3: To increase the exchange rate
Option 4: To decrease the exchange rate
Correct Answer: To encourage investment in the economy
Solution : To encourage investment in the economy, the Central Bank may Reduce Cash Reserve Ratio. Hence option A is correct
Question : To reduce credit availability in the economy, the Central bank may___
Question : The central bank may________ to discourage credit in the economy.
Question : ___________ is the rate at which the central bank lends money to commercial banks.
Question : It refers to a system in which foreign exchange rate is determined by market forces in central bank influence the exchange rate.
Question : ___________ is the rate at which the central bank borrows money from commercial banks.
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