Which one is NOT what it claims?

Exercise and reference answers

Questions

1. Items

   1. CRR
   2. Moral suasion
   3. Bank rate
   4. Open market ops

   Reason

   Moral suasion is a qualitative tool. The other three are quantitative tools that change the extent of money supply.

   Odd item

   Moral suasion

2. Items

   1. Repo
   2. Reverse repo
   3. Margin requirement
   4. Outright purchase

   Reason

   Margin requirement is a qualitative tool. The other three are forms of open market operation.

   Odd item

   Margin requirement

3. Items

   1. Issues the currency
   2. Banker to the government
   3. Custodian of forex reserves
   4. Sets company tax rates

   Reason

   Tax rates are set by the government, not the central bank. The other three are central bank functions.

   Odd item

   Sets company tax rates

Instructions

Tap the item that does not belong with the rest.

Explanation