Question : When the credit creation capacity of the commercial banks is likely to fall ?  
 

Option 1: When the central bank sells securities in the market, 
 

Option 2: When the commercial bank sells securities in the market, 
 

Option 3: When the Local bank sells securities in the market, 
 

Option 4: All of the above. 
 

Question : Which bank  can increase the availability of credit by Selling government securities 
 

Option 1: Local Bank  
 

Option 2: Central Bank 
 

Option 3: Private Bank  
 

Option 4: Commercial Bank 
 

Question : The discount rate is the interest rate at which:

Option 1: Commercial banks borrow from the central bank
  

Option 2: Commercial banks lend to the central bank
    

Option 3: The government borrows from the central bank

Option 4: The central bank lends to the government

Question : The discount rate is the interest rate at which:

Option 1: Commercial banks borrow from the central bank
   

Option 2: Commercial banks lend to the central bank
  

Option 3: The government borrows from the central bank

Option 4: The central bank lends to the government

Question : The monetary policy is controlled by the:

Option 1: Government
    

Option 2: Central bank
   

Option 3: Stock market

Option 4: Commercial banks

Question : Which of the following statement is incorrect?
 

Option 1: Primary market deals with issue of new securities by new companies.
 

Option 2: Primary market sells securities to the investors through an intermediary
 

Option 3: In the primary market both buying and selling of securities take place.
 

Option 4: None of the above