To provide a focal point for central bank (RBI) intervention for influencing liquidity and general level of interest rates in the economy is an important function of

Question

Quizplus · Accepted Answer

The Money Market plays a crucial role in providing a focal point for central bank intervention to influence liquidity and the general level of interest rates in the economy. Central banks, like the RBI, use operations in the money market to implement monetary policy, affecting short-term interest rates and overall economic activity.

To Provide a Focal Point for Central Bank (RBI) Intervention