By removing or easing the 'captive market' requirements on financial institutions which forced them to hold government bonds, it gave the institutions the ability to trade in the securities.

Question

Quizplus · Accepted Answer

Removing or easing 'captive market' requirements allows financial institutions to have more flexibility in their investment choices, including the ability to trade in securities rather than being obligated to hold government bonds.

By Removing or Easing the 'Captive Market' Requirements on Financial