When the Central Bank intends to expand the credit it should Archives - Management Notes

When the Central Bank intends to expand the credit, it should

August 11, 2023 by Bibisha Shiwakoti

When the Central Bank intends to expand the credit, it should

When the Central Bank intends to expand the credit, it should

1. Raise the margin requirements
2. Raise the variable reserve ratio
3. Lower the bank rate
4. Purchase government securities in the open market

Correct answer: Purchase government securities in open market