[amp_mcq option1=”a-3, b-1, c-2, d-4″ option2=”a-1, b-2, c-3, d-4″ option3=”a-4, b-2, c-1, d-3″ option4=”a-3, b-1, c-4, d-2″ correct=”option1″]<\/p>\n
The correct answer is: A. a-3, b-1, c-2, d-4.<\/p>\n
Bank Rate Policy is a monetary policy tool used by central banks to control the money supply. It involves the alteration of the discount rate, which is the interest rate that banks charge each other for short-term loans. When the discount rate is increased, it becomes more expensive for banks to borrow money, which reduces the amount of money they have available to lend. This can help to slow down the economy. When the discount rate is decreased, it becomes cheaper for banks to borrow money, which increases the amount of money they have available to lend. This can help to stimulate the economy.<\/p>\n
Credit Rationing is a monetary policy tool used by central banks to control the money supply. It involves the setting of limits on the amount of credit that banks can extend to borrowers. This can be done by setting maximum loan-to-value ratios, or by requiring banks to hold more capital against loans. Credit Rationing can help to slow down the economy by making it more difficult for businesses and consumers to borrow money.<\/p>\n
Variable Reserve System is a monetary policy tool used by central banks to control the money supply. It involves the variation of the minimum reserves that banks are required to hold against their deposits. When the minimum reserve requirement is increased, it reduces the amount of money that banks have available to lend. This can help to slow down the economy. When the minimum reserve requirement is decreased, it increases the amount of money that banks have available to lend. This can help to stimulate the economy.<\/p>\n
Open Market Operations is a monetary policy tool used by central banks to control the money supply. It involves the purchase and sale of government securities in the open market. When the central bank purchases securities, it injects money into the economy. When the central bank sells securities, it withdraws money from the economy. Open Market Operations can be used to either stimulate or slow down the economy.<\/p>\n
In conclusion, the correct answer is: A. a-3, b-1, c-2, d-4.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”a-3, b-1, c-2, d-4″ option2=”a-1, b-2, c-3, d-4″ option3=”a-4, b-2, c-1, d-3″ option4=”a-3, b-1, c-4, d-2″ correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[699],"tags":[],"class_list":["post-33007","post","type-post","status-publish","format-standard","hentry","category-banking-and-financial-institutions","no-featured-image-padding"],"yoast_head":"\n