Economics · Monetary Policy
Which of the following pairs is correctly matched regarding monetary policy tools?
- 1Reverse Repo Rate - Rate at which commercial banks borrow short-term funds from the RBI
- 2Open Market Operations - Purchase and sale of government securities by the central bank✓
- 3Bank Rate - Short-term collateralized lending rate of the central bank
- 4Statutory Liquidity Ratio - Cash reserves required to be kept exclusively with the RBI
Correct answer
Open Market Operations - Purchase and sale of government securities by the central bank
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