Match the following: List-I List-II 1. Legal requirement a. Open Market operations 2. Repo rate b.…
The cash reserve ratio is a legal reserve requirement, and the repo rate is the rate on repurchase agreements. Gilt-edged securities are used in open market operations,…
Choose your answer
Match the following:
| List-I | List-II |
| 1. Legal requirement | a. Open Market operations |
| 2. Repo rate | b. Credit rationing |
| 3. Gilt-edged securities | c. Rate on repurchase agreements |
| 4. Selective credit control | d. Cash Reserve Ratio |
Answer and explanation
Correct answer A
The cash reserve ratio is a legal reserve requirement, and the repo rate is the rate on repurchase agreements. Gilt-edged securities are used in open market operations, while credit rationing is a selective credit control, giving 1-d, 2-c, 3-a, 4-b.
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Telangana SET (TG SET)