The RBI can increase the money supply in the market by:
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When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market and it sells government securities to suck out liquidity from the system. 4. RBI carries out the OMO through commercial banks and does not directly deal with the public.
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5
Answer:
When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market and it sells government securities to suck out liquidity from the system. 4. RBI carries out the OMO through commercial banks and does not directly deal with the public
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