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 it ?
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 it ?
Answer: Buy bonds in the open market
Notes: When RBI buys bonds in the open market, Banks get money and Cash Reserves would increase.

 

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