Question

Identify the correctly matched pair of the items in Column A to that of Column B

Column A		Column B
1	Money	(a)	Supply of Money
2	Commercial Bank	(b)	Store of Value
3	Central Bank	(c)	Credit Control
4	M4	(d)	Circulation of Money

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

The volume and usage of credit are regulated by the central bank using quantitative and qualitative tools, i.e. monetary policy. Bank Rate, Repo Rate, and Cash Reserve Ratio are all monetary policy instruments.