-
Mining3 Topics1 Quiz
-
Financial Institutions I7 Topics1 Quiz
-
Financial Institutions II5 Topics1 Quiz
-
Financial Institutions III5 Topics1 Quiz
-
Business Organisation3 Topics
-
Money5 Topics1 Quiz
-
Channels of Distribution I5 Topics1 Quiz
-
Channels of Distribution II6 Topics1 Quiz
-
Business Finance7 Topics1 Quiz
Instruments Used by Central Bank to Control Commercial Banks
Topic Content:
- Instruments Used by Central Bank to Control Commercial Banks
Central bank uses the following instruments to control the activities of commercial banks:
Open Market Operation (OMO):
This is the sale and purchase of government securities by the central bank. When the central bank feels that the quantity of money in circulation is too much, it sells treasury bills to commercial banks and collects money from them, thus reducing their lending capacity.
On the other hand, if the quantity of money in circulation is low the
Full lesson notes for the term are available to subscribers only.
You are viewing an excerpt of this Topic. Subscribe Now to get Full Access to ALL this Subject’s Topics and Quizzes for this Term!
Click on the button “Subscribe Now” below for Full Access!
Subscribe Now
Note: If you have Already Subscribed and you are seeing this message, it means you are logged out. Please Log In using the Login Button Below to Carry on Studying!
- ⚡ Instant grading & results
- 📈 Student progress tracking
- 📝 End-of-term examinations
- 📄 Official student report cards
- 🚫 Ad-free learning experience
- 📱 Mobile & desktop friendly
Like this content
