Open Market Operations

Open Market Operations The Theory. Thc term Operations’ in the wider sense means purchase or sale by a central bank of any kind of paper in which it deals, like government securities or any other public securities 01 trade bills, etc. In practice, however,...

Balik Rate

Balik Rate The hank rat I I e rate at which the central bank of a countrj i 111m,;It. discount first class. bills. It is, thus the rate of discount of the central banks, while the market rate I the rate of discount prevailing in the money mar et among the other...

Difficulties of Credit Control

Difficulties of Credit Control There arc several difficulties in the way of the central bank being able to cuntrol credit: First, bank credit is not the only form of credit. There is commercial credit like hook credit, bills of exchange and promissory notes (nol...