How 156 questions's answer is a

Sahiba · 9 Aug 2024

Option B is the correct answer. One of the monetary policy of central bank is Open market operations in which central bank buys or sells the government securities or treasury bills from/to the general public or commercial banks. An open market purchase increases the reserves with commercial banks and hence increases their credit creation power which results in an increase in the money supply.

SHIVAM · 9 Aug 2024

C

Pawan · 9 Aug 2024

When central bank purchase the bonds from open market then its will "reduce" the reserves from banks and bank will "reduce" Money supply as well So correct ans is (a)

Dev · 9 Aug 2024

Correct option is B

KARANPAL · 9 Aug 2024

D