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Choose the Correct Answer from Given Options in Order to Encourage Investment in the Economy, the Central Bank May _____. - Economics

MCQ

Choose the correct answer from given options

In order to encourage investment in the economy, the Central Bank may __________.

Options

  • Reduce Cash Reserve ratio

  • Increase Cash Reserve Ratio

  • Sell Government securities in open market

  • Increase Bank Rate

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Solution

In order to encourage investment in the economy, the Central Bank may reduce the cash reserve ratio. 

Hence, the correct answer is option Reduce Cash Reserve ratio.

Concept: Definition - Central Bank
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