Which of the following is an instrument of Monetary Policy used by the Central Bank?
Open market operations are purchases or sales of securities by a central bank to influence banking-system liquidity. Public expenditure, taxation and deficit financing…
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Which of the following is an instrument of Monetary Policy used by the Central Bank?
Answer and explanation
Correct answer C
Open market operations are purchases or sales of securities by a central bank to influence banking-system liquidity. Public expenditure, taxation and deficit financing concern the government's budget and are fiscal measures.
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Andhra Pradesh SET (APSET)