Match the items of List-I with those in List-IList-II (a) Bank Rate Policy 1. Involving the shortening…
Matching the monetary policy instruments: (a) Bank Rate Policy involves (3) alteration of the central bank's discount rate; (b) Credit Rationing involves (1) restricting…
Choose your answer
Match the items of List-I with those in
| List-I | List-II |
|---|---|
| (a) Bank Rate Policy | 1. Involving the shortening of the currency of bills eligible for rediscount. |
| (b) Credit Rationing | 2. Involving the Purchase and sale of securities in the open market. |
| (c) Variable Reserve System | 3. Involving the alteration of discount rate. |
| (d) Open Market Operations | 4. Involving the variation of the minimum reserves |
Answer and explanation
Correct answer D
Matching the monetary policy instruments: (a) Bank Rate Policy involves (3) alteration of the central bank's discount rate; (b) Credit Rationing involves (1) restricting credit or shortening the currency of bills eligible for rediscount; (c) Variable Reserve System involves (4) variation of minimum cash reserves; and (d) Open Market Operations involve (2) purchase and sale of government securities in the open market. Thus, '(a)-3, (b)-1, (c)-4, (d)-2' is correct.
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UGC NET Commerce