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How RBI Controls Our Fate #shorts...

How RBI Controls Our Fate #shorts

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What are the instruments of monetary policy of RBI? How dose RBI stabilze money supply against exogenous shocks ? Hint: The instruments of monetary policy of RBI can be broadly classified into two-groups: (i) Quantitative Instruments: (a) Repo Rate and Bank Rate, (b) Open Market Operation, (c) Legal Reserve Requirements. (ii) Qualitative Instruments: (a) Margin requirements, (b) Mqral Suasion, (c) Selective Credit Controls. RBI controls the money supply and credit in the best interests of the economy. It helps to stabilize money supply against exogenous shocks. For explanation, discuss "Controller of Money Supply and Credit”.

The rate of interest on which commercial banks borrow money from RBI to meet their short term credit needs is known as:

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