Question : ___________ is a process where the central bank reduces the money supply in the economy.
Option 1: Contractionary monetary policy
Option 2: Expansionary monetary policy
Option 3: Quantitative easing
Option 4: Open market operations
Correct Answer: Contractionary monetary policy
Solution : The correct answer is (a) Contractionary monetary policy.
Contractionary monetary policy refers to the actions taken by the central bank to reduce the money supply in the economy, typically with the aim of controlling inflation and curbing excessive economic growth.
Contractionary monetary policy is employed when there is a need to control inflationary pressures or to address an overheating economy with excessive credit growth.
Question : ___________ is a monetary policy tool used by the central bank to control the money supply in the economy.
Question : Which policy measures are generally used to reduce unemployment in an economy?
Question : Which of the following is not a tool of quantitative instruments of monetary policy?
Question : Dear money policy of the central bank, which is used to keep growth steady and in line with other economic factors, refers to
Question : The government's policy of reducing taxes to stimulate economic growth is known as ____________.
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