Question : When the credit creation capacity of the commercial banks is likely to fall ?
Option 1: When the central bank sells securities in the market,
Option 2: When the commercial bank sells securities in the market,
Option 3: When the Local bank sells securities in the market,
Option 4: All of the above.
Correct Answer: When the central bank sells securities in the market,
Solution : When the central bank sells securities in the market, the credit creation capacity of the commercial banks is likely to fall Hence option A is correct.
Question : Which bank can increase the availability of credit by Selling government securities
Question : The discount rate is the interest rate at which:
Question : Which of the following is a function of the Small Industries Development Bank of India (SIDBI)?
Question : The monetary policy is controlled by the:
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