The Central Bank sales of securities could reduce lending interest rate charged by commercial banks (CBs).

Regulations imposed by Central Bank will hinder the growth of commercial banks.

Commercial banks should concentrate on mobilizing the cheapest deposits from the public.

The use of non-deposit borrowing should be limited to liquidity demand rather than expanding credit.

Interest rates on non-deposits are highly volatile.

Are these statements true or false, explain.

Answer rating: 100% (QA)

1 The Central Bank sales of securities could reduce lending interest rate charged by commercial banks CBs False The Central Bank sells securities to d... View the full answer