Which among the following would most likely follow if the Reserve Bank of India effects selling of the securities?
Q. Which among the following would most likely follow if the Reserve Bank of India effects selling of the securities?
Answer: The cash resources at the disposal of the commercial banks get diminished.
Notes: The Reserve Bank of India starts selling the Government Securities, on behalf of the Government. Either the commercial banks or retail investors buy the securities, resulting in decrease of cash resources at the disposal of the commercial banks.

 

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