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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 Correct Answer Incorrect Answer
    B 1 and 4 Correct Answer Incorrect Answer
    C 2 and 3 Correct Answer Incorrect Answer
    D 2 and 4 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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