Q.

Which of the following policies would be most appropriate for the State Bank of Pakistan to follow if it wished to make it more difficult for the commercial banks to grant loans?

A. Buying long-term securities in the open market
B. Raise the percentage of special deposits required
C. Reduce the liquidity ratio
D. Borrow through treasury bills rather than long term bonds
Answer» D. Borrow through treasury bills rather than long term bonds
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