Economics · Banking and Monetary Policy
Which of the following statements is/are correct? Statement I: A bank's main liability constitutes the deposits it holds. Statement II: Open Market Operations (OMO) involve the buying and selling of government securities by the central bank. Statement III: The Bank Rate is the official rate at which the RBI lends long-term funds to commercial banks.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only Statements II and III are correct
- 2Only Statements I and II are correct
- 3Statements I, II and III are all correct✓
- 4Only Statement III is correct
Correct answer
Statements I, II and III are all correct
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