The system of selling Government bonds by a central bank, such as SBI, is referred to as "Open Market Operations". This is a key monetary policy tool used by central banks around the world to implement their monetary policy objectives.

Here are the steps explaining the process:

1. The central bank, in this case, the State Bank of India (SBI), holds government bonds as part of its monetary policy operations.

2. When the central bank wants to implement a contractionary monetary policy, which is aimed at reducing the amount of money in the economy, it sells some of the government bonds it holds.

3. These bonds are sold to commercial banks and the general public in the open market.

4. When these entities buy the bonds, they pay the central bank, effectively taking money out of the economy and reducing the overall money supply.

5. This process of selling (or buying) government bonds in the open market to control the money supply is referred to as Open Market Operations.

Question

The system of selling Government bonds by a central bank, such as SBI, is referred to as "Open Market Operations". This is a key monetary policy tool used by central banks around the world to implement their monetary policy objectives.

Here are the steps explaining the process:

1. The central bank, in this case, the State Bank of India (SBI), holds government bonds as part of its monetary policy operations.

2. When the central bank wants to implement a contractionary monetary policy, which is aimed at reducing the amount of money in the economy, it sells some of the government bonds it holds.

3. These bonds are sold to commercial banks and the general public in the open market.

4. When these entities buy the bonds, they pay the central bank, effectively taking money out of the economy and reducing the overall money supply.

5. This process of selling (or buying) government bonds in the open market to control the money supply is referred to as Open Market Operations.

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The system of selling Government bonds by a central bank, such as SBI, is referred to as "Open Market Operations". This is a key monetary policy tool used by central banks around the world to implement their monetary policy objectives.

Here are the steps explaining the process:

1. The central bank, in this case, the State Bank of India (SBI), holds government bonds as part of its monetary policy operations.

2. When the central bank wants to implement a contractionary monetary policy, which is aimed at reducing the amount of money in the economy, it sells some of the government bonds it holds.

3. These bonds are sold to commercial banks and the general public in the open market.

4. When these entities buy the bonds, they pay the central bank, effectively taking money out of the economy and reducing the overall money supply.

5. This process of selling (or buying) government bonds in the open market to control the money supply is referred to as Open Market Operations.

SBI, as a means of implementing monetary policy, sells some of the Government bonds it was holding. This system of selling Government bonds by a central bank is referred to as?

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