Economy, asked by srsipmf, 10 months ago

Prepare a flow chart showing ''HOW MONEY SUPPLY IS CONTROLLED BY CENTRAL BANK''. (Covering Both the monetary policies:- quantitative and qualitative in context with Aggregate demand & Aggregate supply)

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Answered by aadil1290
14

Answer:

The main way central banks control money supply is buying and selling government debt in the form of short term government bonds. Economists call this 'open market operations', because the central bank is selling bonds on the open market. Central banks usually own a big portion of their county's debt.

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