MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Ratios and OMO

Open market o...

Question

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

A

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Both A and B

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

The commercial bank of the country

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

The central bank of the country

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

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.

Suggest Corrections

thumbs-up

1

Similar questions

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

1. Credit rationing is quantitative credit control measure of Central bank.
2. Regulation of Consumer Credit is a quantitative credit control measure of Central Bank.
3. Bank Rate is the selective credit control measure used by the Central Bank of the country.
4. Central Bank also performs commercial banking business.
5. The main objective of a Central Bank is to earn profit.

Q. How does central bank control credit creation by commercial banks through open market operations? Explain.

Q. How does a central bank influence credit creation by commercial banks through 'open market operations'? Explain.

Q. Bank rate is the selective credit control measure used by the central bank of the country.

Q. State whether the following statements are True or False.
1. Commercial banks are the backbone of modern economy.
2. The saving bank deposit can be opened with a small amount.
3. Credit money is created by the central bank of a country.
4. There is no difference between primary deposit and secondary deposit of a commercial bank.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Ratios and OMO

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon