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Question
Policy measures by the RBI to control and regulate money supply is called __________.
Policy measures by the RBI to control and regulate money supply is called __________.
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Solution
The correct option is A monetary policy
Monetary policy refers
to various central bank policies which include both qualitative as well as
quantitative measures that regulate various factors that influence domestic
currency directly or indirectly like money supply, interest rates, and credit
availability in the economy. These measures control the rate of money supply in case of inflation or deflation.
Monetary policy refers to various central bank policies which include both qualitative as well as quantitative measures that regulate various factors that influence domestic currency directly or indirectly like money supply, interest rates, and credit availability in the economy. These measures control the rate of money supply in case of inflation or deflation.
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