CSS OPTIONAL SUBJECTS MCQs

Here, you may find CSS Optional Subjects MCQs. If you want to prepare MCQs of optional subjects, CSS MCQs platform is here to serve you while preparing your MCQs portion of your CSS Exam. Please practice these CSS Optional Subjects MCQs on a daily basis.

If there is a general shortage of liquidity in the money market then?

A. The banks will increase their lending
B. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will fall and the central bank may be expected to reduce the supply of liquidity to the banks
C. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the long-term interest rate may be expected to rise as a result
D. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the central bank may be expected to increase the supply of liquidity to the banks.

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