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Q: If the Reserve Bank of India wants to increase the Cash Reserves commercial Banks, which among the following would be the most probable step taken by

  • 1
    Release Gold from its reserves
  • 2
    Buy bonds in the open market
  • 3
    prohibit the transactions that involve bill of exchange
  • 4
    Increase the tranche reserves with the IMF
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Answer : 2. "Buy bonds in the open market"

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