Distinguish between: 3. Bank Rate and Open Market Operations

Distinguish between:

3. Bank Rate and Open Market Operations

Basis
Bank Rate
Open Market Operations
Meaning
It refers to the rate at which the Central bank grants loans to the commercial Banks.
It refers to the buying and selling of government securities.
Influence on the interest rate and the money supply
It affects the rate of interest directly and the money supply indirectly.
It affects the rate of interest indirectly and the money supply directly.

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