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Commerce · Q632

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 632

Q632

If the reserve bank want to increase the liquid currency with commercial banks, it should

A.
Release the gold from its own corpus
B.
Government bonds should be bought in the open market
Answer
C.
Transactions relating to bill of exchange should be stopped
D.
Cash reserve ratio should be increased

Answer: Option B

Solution

Answer: Option B
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