Advertisements
Advertisements
Question
What is the credit supply policy in an economy called?
Short Answer
Advertisements
Solution
- 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.
shaalaa.com
Monetary Policy of the Central Bank
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Define bank rate.
Which of the following is not a quantitative method of credit control?
The process of buying and selling of securities by the central bank of a country is known as ______.
During inflation, the central bank usually:
What is meant by open market operations?
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
Define moral persuasion.
