1 answer

Which financial instrument can not be purchased by commercial banks?

Question:

Which financial instrument can not be purchased by commercial banks?

Answers

Financial instruments include financial assets such as SDR, monetary gold,currency,deposits,securities other than shares,borrowings,loans,financial derivatives and other financial instruments like Letters of guarantee, Letter of Credit , Financial commitments etc. The financial instrument which cannot be purchased by commercial banks is Special Drawing Rights.They are purchased by Central Bank of a country.

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