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Ratios and OMO

Open market o...

Question

Open market operations as an instrument of credit control are performed by:

A

None of these

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B

Both A and B

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C

The commercial bank of the country

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D

The central bank of the country

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Solution

The correct option is D
The central bank of the country

Open market operations as an instrument of credit control are performed by RBI.

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Q. State whether the following statements are TRUE or FALSE.

1. Credit rationing is quantitative credit control measure of Central bank.
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4. Central Bank also performs commercial banking business.
5. The main objective of a Central Bank is to earn profit.

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