question archive Identify which of the following correctly refers to the method(s) used by the central bank to implement its monetary policy
Identify which of the following correctly refers to the method(s) used by the central bank to implement its monetary policy
Subject:FinancePrice:2.86 Bought30
Identify which of the following correctly refers to the method(s) used by the central bank to implement its monetary policy. I. Buying and selling government securities; II. Repurchase agreements; III. Interest rate swaps; IV. Foreign currency swaps I and II (BI, II and III I, II and IV D LII, III and IV
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Central bank is always trying to manage the fluctuations in the monetary policy by entering into various kinds of buying and selling of the government securities which is a part of open market operations and they will also be trying to entering into various types of repurchase agreements to stabilize the monetary supply.
All the other options are false in relation to interest rate swap and foreign currency swap.
Correct answer will be option (A) I and II.
