During depression, it is advisable to:

CA Foundation · Business Economics · MTP · September 2026
During depression, it is advisable to:
(A) A. lower Bank Rate and purchase securities in the market.
(B) B. Increase Bank Rate and purchase securities in the open market.
(C) C. decrease Bank Rate and sell securities in the open market.
(D) D. Increase Bank Rate and sell securities in the open market.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. lower Bank Rate and purchase securities in the market.

Topics: Money Market

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