An increase in the Bank Rate generally indicates that the

Options

(a)

market rate of interest is likely to fall

(b)

Central bank is no longer making loans to commercial banks

(c)

Central Bank is following an easy money policy

(d)

Central Bank is following a tight money policy

Answer

(D)

Supply of money remaining the same when there is an increase in demand for money, there will be

(a)

a fall in the level of prices

(b)

an increase in the rate of interest

(c)

a decrease in the rate of interest

(d)

an increase in the level of income and employment

(B)

In the context of Indian economy, ‘Open Market Operations’ refers to

(a)

borrowing by scheduled banks from the RBI

(b)

lending by commercial banks to industry and trade

(c)

purchase and sale of government securities by the RBI

(d)

None of the above

(C)