Advertisements
Advertisements
Question
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Options
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true and Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Advertisements
Solution
Assertion (A) is true and Reason (R) is false.
APPEARS IN
RELATED QUESTIONS
The rate of which commercial banks borrow from the Central Bank is the:
During deflation, the Central Bank usually ______.
Give any two reasons as to why a country needs a central bank.
Define the term Statutory Liquidity Ratio.
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
What is this policy called that controls the credit supply in an economy?
Which are qualitative methods of credit control?
Give an example of margin requirements.
