Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy.

Correct Option: C

Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy.

The terms ‘bull’ and ‘bear’ describe upward and downward trends respectively of the stock market. A bear market refers to a decline in prices, usually for a period of a few months, in a single security or asset, group of securities or the securities market as a whole. A bull market is when prices are rising.

Correct Option: C

The terms ‘bull’ and ‘bear’ describe upward and downward trends respectively of the stock market. A bear market refers to a decline in prices, usually for a period of a few months, in a single security or asset, group of securities or the securities market as a whole. A bull market is when prices are rising.

Managed currency refers to currency whose exchange rate is not determined by the free-market forces of demand and supply but instead by the government’s intervention through the country’s central bank. The majority of major world currencies are managed at least to some degree.

Correct Option: B

Managed currency refers to currency whose exchange rate is not determined by the free-market forces of demand and supply but instead by the government’s intervention through the country’s central bank. The majority of major world currencies are managed at least to some degree.

‘e-banking’ stands for electronic banking which involves the use of computers to carry out banking transactions such as withdrawals through cash dispensers or transfer of funds at point of sale. It is also known as online or interne banking.

Correct Option: C

‘e-banking’ stands for electronic banking which involves the use of computers to carry out banking transactions such as withdrawals through cash dispensers or transfer of funds at point of sale. It is also known as online or interne banking.

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.

Correct Option: A

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy.