Identify the correct statements from the following: (A) When central bank buys securities without any promise to sell them later is called injecting (B) Open market operations in buying and selling of securities by the commercial bank (C) Open market operation leads to a change in bank rate (D) When central bank sells securities without any promise to buy them later is called injecting (E) RBI influences money supply through open market operations Choose the correct answer from the options given below:

Question

Identify the correct statements from the following: (A) When central bank buys securities without any promise to sell them later is called injecting (B) Open market operations in buying and selling of securities by the commercial bank (C) Open market operation leads to a change in bank rate (D) When central bank sells securities without any promise to buy them later is called injecting  (E) RBI influences money supply through open market operations Choose the correct answer from the options given below:

cdquestions Admin · Accepted Answer

The correct option is (A): (A) and (E) only

Answer

(A) and (E) only

Answer

(A) and (D) only

Answer

(E) and (D) only

Answer

(B) and (C) only

List-I (Characteristic)		List-II (Implication)
A	Equilibrium	(I)	Plans of all the consumers and firms in the market match
B	Excess supply	(II)	Demand decreases with an increase in income
C	Inferior good	(III)	Supply is greater than market demand
D	Price ceiling	(IV)	Imposition of upper limit by government

The Correct Option is A

Solution and Explanation

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