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प्रश्न
What is the credit supply policy in an economy called?
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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, stabilize the currency, and affect interest rates, all of which contribute to economic activity and financial stability.
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संबंधित प्रश्न
During deflation, the Central Bank usually ______.
In order to encourage investment in the economy, the central bank may ______.
The process of buying and selling of securities by the central bank of a country is known as ______.
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.
Define the term Statutory Liquidity Ratio.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
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?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
