____ is the policy adopted by the Central Bank of an economy in the direction of credit control or money supply
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____ is the policy adopted by the Central Bank of an economy in the direction of credit control or money supply.
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Monetary Policy is the policy adopted by the Central Bank of an economy in the direction of credit control or money supply.
Explanation:-
The Reserve Bank of India (RBI) is empowered to regulate the money supply in the economy through its ‘Monetary Policy’.
It is the policy adopted by the Central Bank of an economy in the direction of credit control or money supply.
As RBI has the sole monopoly in currency issues, it can control credit and supply of money.
RBI uses the following instruments of Monetary Policy.
1. Rep Rate
2. Bank Rate
3. Reverse Repo Rate
4. Open Market Operations
5. Legal Reserve Requirements
6. Margin Requirements.
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