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Match each policy tool to its job

Exercise and reference answers

Matching pairs
  1. Left
    CRR
    Right
    Share of deposits held as cash reserves
  2. Left
    SLR
    Right
    Reserves a bank must hold in liquid form
  3. Left
    Bank rate
    Right
    Rate at which RBI lends to commercial banks
  4. Left
    Repo rate
    Right
    Rate on lending against a resale agreement
  5. Left
    Reverse repo
    Right
    Rate at which RBI withdraws money
  6. Left
    Open market ops
    Right
    Buying and selling government bonds
Instructions
Tap a tool on the left, then tap what it does.

Explanation

_Source: syllabus Macroeconomics XII Ch3 Money and Banking, 3.4 POLICY TOOLS TO CONTROL MONEY SUPPLY_
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