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policy refers to a central bank's policy...

_policy refers to a central bank's policy to control the supply of money in the economy.

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Monetary
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Commercial banks pay no role in the stock of money supply in the economy.

Dicuss how the central bank plays the role of 'controller of credit' in an economy ?

Knowledge Check

  • Quantitiative intrument to control supply of money

    A
    open market operations
    B
    moral suasion
    C
    change in margin requirement
    D
    all of these

  • Fiscal policy refers to :

    A
    Agricultural Fertilizer Policy
    B
    Rural Credit Policy
    C
    Interest Policy
    D
    Related to revenue and expenditure policy of the Government

  • Source of money supply in an economy is

    A
    Central Bank
    B
    Commercial banks
    C
    Both (a) and (b)
    D
    Government

    • Similar Questions

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    RBI produces money while commercial banks increase the supply of money.

    Commercial banks do not contribute to the amount of money supply in the economy as they do not have the power to issue currency defend or refute.

    The central bank_ securities to control excess demand.

    Monday Policy is the policy of ___ to control money and credit creation in the economy.

    Money supply refers to :

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