Q.
Name of the tools used to control the money supply regulation of india?
Asked by jeevitha ellappan,
30 Apr '12 01:38 pm
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Governments and central banks have taken both regulatory and free market approaches to monetary policy. Some of the tools used to control the money supply include:
1.changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks
2.currency purchases or sales
3.increasing or lowering government borrowing
4.increasing or lowering government spending
5.manipulation of exchange rates
6.raising or lowering bank reserve requirements
7.regulation or prohibition of private currencies
8.taxation or tax breaks on imports or exports of capital into a country
Answered by venkat mani, 30 Apr '12 01:40 pm
1.changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks
2.currency purchases or sales
3.increasing or lowering government borrowing
4.increasing or lowering government spending
5.manipulation of exchange rates
6.raising or lowering bank reserve requirements
7.regulation or prohibition of private currencies
8.taxation or tax breaks on imports or exports of capital into a country
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