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FOREX Policy

If the Reserv...

Question

If the Reserve Bank of India sells securities in the market It will result in _________.

A

an immediate change in the bank rate

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B

a fall in the market rate of interest

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C

an increase in loans to banks' customers

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D

a reduction in bank deposits

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Solution

The correct option is A an immediate change in the bank rate
If the RBI sells securities in the market the bank deposits will decline.

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