Question

If the RBI adopts an expansionist open market operations policy, this means that it will

a.

buy securities from non-government holders

b.

sell securities in the open market

c.

offer commercial banks more credit in the open market

d.

openly announce to the market that it intends to expand credit

Answer: (c).offer commercial banks more credit in the open market

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Q. If the RBI adopts an expansionist open market operations policy, this means that it will

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