Which one of the following is NOT an instrument of monetary policy ?
The call money market is a market for very short-term borrowing and lending, rather than an instrument of monetary policy. Open market operations, reserve requirements and…
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Which one of the following is NOT an instrument of monetary policy ?
Answer and explanation
Correct answer C
The call money market is a market for very short-term borrowing and lending, rather than an instrument of monetary policy. Open market operations, reserve requirements and the discount rate are tools through which a central bank influences monetary conditions.
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Gujarat SET (GSET)