Question

14. How the following tools can be used for credit control by the central bank in an economy (a) open
market operation (b) margin requirement.
[4]​

Answer 1

Answer:

The central bank uses tools like open market operations and margin requirements for controlling inflation and ensuring that money is there for the banks to lend. ... If central bank finds excess money available in banks with a low rate of credit interest then they impose margin requirements.

Explanation:

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