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In order to encourage investment in the economy, the Central Bank may ______. - Economics

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Question

In order to encourage investment in the economy, the Central Bank may ______. 

Options

  • Reduce Cash Reserve ratio

  • Increase Cash Reserve Ratio

  • Sell Government securities in open market

  • Increase Bank Rate

MCQ
Fill in the Blanks

Solution

In order to encourage investment in the economy, the Central Bank may reduce cash reserve ratio.

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Definition - Central Bank
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2018-2019 (March) 58/2/1

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