Which of the below mentioned statements are correct?
i. Bond price and interest rate are negatively related
ii. In secondary market prices of government securities are decided by RBI
iii. Credit creation varies directly with Cash Reserve Ratio (CRR)
When interest rate increases in the market, prices of the bonds decline. In secondary market the price of any security is determined by the market (demand and supply). RBI has no control on it. When CRR increases credit creation declines.