Maharashtra State BoardHSC Arts 12th Board Exam
Advertisement Remove all ads

Fill in the Blanks with Appropriate Alternatives Given in the Bracket. to Increase Credit Creation Central Bank __________ the Debentures. - Economics

MCQ

Fill in the blanks with appropriate alternatives given in the bracket.  

To increase credit creation Central Bank __________ the debentures. 

Options

  • 1.purchases

  • 2.sells

  • 3..borrows

  • 4.stocks

Advertisement Remove all ads

Solution

‚ÄčTo increase credit creation Central Bank purchases the debentures.
Explanation:
When the central bank purchases debentures and securities, money supply increases in the economy. This in turn increases the process of credit creation by the commercial banks in the economy,

Concept: Definition - Central Bank
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×