Which of the following terms indicates a mechanism used by commercial banks for providing credit to the government?
A
Cash Credit Ratio
B
Debt Service Obligation
C
Liquidity Adjustment Facility
D
Statutory Liquidity Ratio
Correct Answer: Option D
Explanation
1. The question asks to identify which pairs of economic terms and their descriptions are correctly matched.
2. Pair 1: 'Melt down - Fall in stock prices'. A financial meltdown typically involves a rapid and severe fall in stock prices. While implying severity, it's commonly associated with a significant drop. This pair is plausibly matched.
3. Pair 2: 'Recession - Fall in growth rate'. A recession involves negative economic growth (fall in GDP), not just a slower growth rate. This pair is incorrectly matched.
4. Pair 3: 'Slow down - Fall in GDP'. A slow down refers to a decreasing growth rate, while a fall in GDP defines a recession. This pair is incorrectly matched.
5. Based on the analysis, only Pair 1 is reasonably matched. Pairs 2 and 3 incorrectly define the terms.
6. Therefore, the correct answer is (A) 1 only.