Multiple Choice Questions on Dear money policy is 1 it is used to fight with deflation 2 In OMO RBI sells securities 3 in w........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

Dear money policy is 1 it is used to fight with deflation 2 In OMO RBI sells securities 3 in w...........

Economic Affairs Money Supply and Monetary Policy
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     Dear money policy is :

    1. it is used to fight with deflation

    2. In OMO RBI sells securities.

    3. in which RBI makes the loans costlier by increasing rates and ratios.

    Which of the following statement is/are true?

     2 and 3 only

    Correct Answer

     1 and 3 only

    Incorrect Answer

     3 only

    Incorrect Answer

     None of these

    Incorrect Answer
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    Explanation:

     A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "tight money”

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