If State Bank has capital shortage and wants to borrow what are-01276
This subjective question is related to the book/course
vu eng201 Business and Technical English Writing.
It can also be found in
vu eng201 Mid Term Solved Past Paper No. 1.
Question 1: If State Bank has capital shortage and wants to borrow, what are the possible sources through which it can get loan?
Answer:
In order to raise liquidity the SBP can do the following:
- Sell securities in the open market and raise cash.
- Change the reserve requirements of the bank.
- Borrow from domestic lenders and financial institutions.
- Issue new domestic bonds.
- Borrow from external agencies like the IMF or ADB.
- Issue foreign bonds to Pakistanis residing abroad.
- Issue foreign bonds to the world markets.
