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 credit.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Question

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 credit.

Option 1: Both are true.

Option 2: Both are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.

Team Careers360 · Accepted Answer

Correct Answer: Both are true.

Solution : 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 credit.
Hence, Option A is correct.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Related Questions

Question : Which of the following statement are true? Grants received from World Bank is the revenue receipt. Sale of public sector undertaking is a capital receipt.

Question : Which of the following statement are true? Sale of government securities by the central bank in the open market is an appropriate policy to check depression in the economy. Deficiency in demand has no effect on the country’s output and

Question : Which of the following statement are true? APC can be more than one. APC+APS =1 always.

Question : Which of the following are true? Purchase of machines by a producer is an intermediate good. Unexpected obsolescence is a component of depreciation.

Question : Which of the following statement are true? Corporate tax is revenue receipts. Tax receipt is a capital receipt

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : Which of the following statement are true?

Grants received from World Bank is the revenue receipt.

Sale of public sector undertaking is a capital receipt.

Question : Which of the following statement are true?

Sale of government securities by the central bank in the open market is an appropriate policy to check depression in the economy.

Deficiency in demand has no effect on the country’s output and

Question : Which of the following statement are true?

APC can be more than one.

APC+APS =1 always.

Question : Which of the following are true?

Purchase of machines by a producer is an intermediate good.

Unexpected obsolescence is a component of depreciation.

Question : Which of the following statement are true?

Corporate tax is revenue receipts.

Tax receipt is a capital receipt