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In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.
 
Q. In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?
  • a)
    Decrease Bank Rate and decrease CRR.
  • b)
    Increase Bank Rate and increase CRR.
  • c)
    Increase Bank Rate and decrease CRR
  • d)
    Decrease Bank Rate and increase CRR.
Correct answer is option 'B'. Can you explain this answer?
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In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.Q.In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?a)Decrease Bank Rate and decrease CRR.b)Increase Bank Rate and increase CRR.c)Increase Bank Rate and decrease CRRd)Decrease Bank Rate and increase CRR.Correct answer is option 'B'. Can you explain this answer?
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In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.Q.In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?a)Decrease Bank Rate and decrease CRR.b)Increase Bank Rate and increase CRR.c)Increase Bank Rate and decrease CRRd)Decrease Bank Rate and increase CRR.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.Q.In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?a)Decrease Bank Rate and decrease CRR.b)Increase Bank Rate and increase CRR.c)Increase Bank Rate and decrease CRRd)Decrease Bank Rate and increase CRR.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.Q.In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?a)Decrease Bank Rate and decrease CRR.b)Increase Bank Rate and increase CRR.c)Increase Bank Rate and decrease CRRd)Decrease Bank Rate and increase CRR.Correct answer is option 'B'. Can you explain this answer?.
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