Advertisements
Advertisements
प्रश्न
What is this policy called that controls the credit supply in an economy?
Advertisements
उत्तर
- Monetary policy refers to the policy that manages an economy's credit supply.
- The central bank uses this policy to regulate the money supply, limit inflation, stabilise the currency, and affect interest rates, all of which contribute to economic activity and financial stability.
APPEARS IN
संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
During deflation, the Central Bank usually ______.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.
Reason (R): An increase in cash reserve ratio reduces the excess reserves of commercial banks and hence limits their credit creating power.
What is meant by open market operations?
Central bank is the lender of the last resort. Explain.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
