Economy, asked by ashwink6077, 9 months ago

Kind of monetary policy could be formed by reserve bank of India to correct the situation of inflation.

Answers

Answered by gauravarduino

Explanation:

To control inflation, the RBI sells the securities in the money market which sucks out excess liquidity from the market. As the amount of liquid cash decreases, demand goes down. This part of monetary policy is called the open market operation.

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