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Question

Consider the following statements- 1. Bond

price and interest rate are positively related. 2. Bond price and interest rate are negatively related. 3. Credit creation varies directly with Cash Reserve Ratio (CRR). 4. Credit creation varies inversely with Cash reserve Ratio (CRR). Which of the statements given above are correct?

A 1 and 2

B 1 and 4

C 2 and 3

D 2 and 4

E None of these

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