Question : Which bank can increase the availability of credit by Selling government securities

Option 1: Local Bank

Option 2: Central Bank

Option 3: Private Bank

Option 4: Commercial Bank

Question

Question : Which bank can increase the availability of credit by Selling government securities

Option 1: Local Bank

Option 2: Central Bank

Option 3: Private Bank

Option 4: Commercial Bank

Team Careers360 · Accepted Answer

Correct Answer: Central Bank

Solution : The central bank can increase the availability of credit by Selling government securities
Hence option B is correct

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Question : Which bank can increase the availability of credit by Selling government securities Option 1: Local Bank Option 2: Central Bank Option 3: Private Bank Option 4: Commercial Bank

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Question : Which bank can increase the availability of credit by Selling government securities

Option 1: Local Bank

Option 2: Central Bank

Option 3: Private Bank

Option 4: Commercial Bank

Question : Which of the following statement are true?

Sale of securities through open market operations reduces the reserves of commercial banks.

Purchase of securities by central bank increase the the reserves and raises the banks ability to give