Practicing Success
Match the following:
|
1-B, 2-D, 3-A, 4-C 1-C, 2-B, 3-A, 4-D 1-B, 2-D, 3-C, 4-A 1-A, 2-D, 3-B, 4-C |
1-B, 2-D, 3-A, 4-C |
An increase in bank rate will result in an increased rate of interest offered to the citizens, which will discourage people to take credit and will reduce the money supply in the economy. Wheres, a decrease in CRR will increase the money available to the bank to lend to the citizens and create credit, resulting in an increased money supply in the economy. Imposing margin requirement, moral suasion, etc are the qualitative measures used by RBI. Whereas, lender's last resort is a function of the RBI where it lend to commercial banks at the time of crisis. |