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प्रश्न
Discuss briefly, how this instrument helps in controlling credit, creation by commercial banks.
उत्तर
Central Bank uses it to control credit created by commercial banks in following manner: The Central Bank employs the Reverse Repo Rate as a credit-control tool. It aids in the regulation of the economy's money supply. When the Central Bank increases the Reverse Repo Rate, commercial banks are more likely to lend their excess cash to the Central Bank rather than to customers. This reduces the amount of money in circulation in the economy, which aids in inflation management.
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संबंधित प्रश्न
Money supply includes ______.
Who regulates money supply in India?
Money supply is a ______ concept.
______ are called legal tenders.
Initial deposits made by the people from their own resources are called ______.
The monetary policy generally targets to ensure ______.
Speculative demand for money is a function of ______.
Which among the following does not have the application of multiplier?
______ formulates the Monetary Policy in the economy.
“With an objective to reduce inflation, Reserve Bank of India may promote the commercial banks to park their surplus funds with it.”
Discuss the rationale behind the step taken by the Reserve Bank of India.
As per the following news published in ‘The Hindu’ on 6th August, 2022:
'The Monetary Policy Committee (MPC) of the Reserve Bank of India raised the Repo Rate by 50 basis points.'
Identify and explain the likely cause and consequences behind this type of action taken by the Reserve Bank of India.
