When a central bank influences the growth of the money supply it is carrying out?

When a central bank influences the growth of the money supply it is carrying out?

The correct answer is Monetary Policy. Monteray policies are made by institutions like central banks with the goal of adjusting or fighting inflation and deflation rates. Fiscal policies would be policies about public spending or about imports and exports and would be made by the congress and not by the central bank.

What is the objective of money?

Aims is to achieve price stability, a viable balance of payments and economic growth. The main twin objectives of monetary policy are; a) low and stable inflation rate and b) maintaining a sufficient level of official foreign exchange reserves.

What are the five monetary policy instruments?

The main monetary policy instruments available to central banks are open market operation, bank reserve requirement, interest rate policy, re-lending and re-discount (including using the term repurchase market), and credit policy (often coordinated with trade policy).

What are qualitative and quantitative instruments?

The quantitative or general measures influence the total volume of the credit while the qualitative measures influence the selective or particular use of credit. Reserve Bank of India has the power to influence the volume of credit created by banks in India.

What are the instruments of quantitative?

The two most commonly used research instruments in quantitative research studies include Questionnaire and Tests. 4. Validity and reliability of instruments: Validity is the degree to which an instrument measure what it is purports to measure.

What are the qualitative instruments?

Qualitative instruments are also known as selective instruments of the RBI’s monetary policy. These instruments are used for discriminating between various uses of credit; for example, they can be used for favouring export over import or essential over non-essential credit supply.