Question

Discuss various tools of monetary policy practiced by reserve bank of india to control money demand and supply in market.

Answer 1

Answer:

quantitative tool

1.cash reserve ratio

2.bank rate

3.repo rate

4.reverse repo rate

5.statutory reserve ratio

6.open market securities

quanlitative tools

1.margin requirement

2.moral sussion

3.credit rationing

Answer 2

Answer:

Cash reserve Ratio

Bank Rate

Repo Rate