Question

Hey Guys Wakeupp...... Answer My Question !!
To soak the liquidity from the market _____ .
a)Gvt securities should be purchased.
b))Gvt securities should be sold.
c)Repo rate should be decrease .
d)Cash reserve ratio should be decrease.

#FOLLOW ME GUYS :)

Answer 1

Answer:

option d is the right answer.....

Answer 2

Ques. To soak the liquidity from the market, to control inflation

(a) Government securities should be purchased.

(b) Government securities should be sold.

(c) Repo rate should be decreased.

(d) Cash reserve ratio should be decreased.

Answer:

The correct answer is option (b) Government securities should be sold.

Explanation:

Inflation lowers the real worth of money, making the liquidity constraint tighter. This issue can be remedied by using a financial intermediary to move cash from entrepreneurs with excess liquidity to those that don't have enough.

The central bank absorbs liquidity from the economy through issuing securities and bonds, reducing the purchasing power of the economy and so controlling inflation.

#SPJ2