If such loans are granted on the basis of open market operations during
 acceptable under normal conditions of interest rate
 central bank or market interest rates, then there may not
 be additional restrictions on the use of borrowed funds.
 The central bank should control only the total amount of liquidity
 provided through open market operations.  Each bank
 determines the uses of funds received.  For example,
 if a bank borrows funds on the basis of open market operations, it
 has every right to be a member of interbank credit or exchange
 markets.

 An important requirement of central bank refinancing is
 that provision, which is taken to ensure that transactions
 open market operations and standing arrangements should be characterized
 high quality and liquidity to prevent the risk of loss to the
 central bank and reduce the administrative burden associated
 the adoption of such a provision.  These requirements are usually completely
 responsible government securities, securities of the central bank and
 foreign currency.