Economy, asked by gopika65, 10 months ago

prepare a short note on the monetary policy of central bank.

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Answered by Anonymous

3

CENTRAL BANK OF INDIA ALSO KNOWN AS RESERVE BANK OF INDIA PLAYS A VERY CONTEMPORARY ROLE IN MONETARY POLICY. IT REGULATES THE SUPPLY OF MONEY IN THE COUNTRY. IT ISSUES THE NOTES. IT ISSUES THE NOTES OF DOMINION ₹200,₹100,₹2000,₹20,₹10,₹50. THE COINS & ₹1&₹2 ARE ISSUED BY THE FINANCE MINISTER.

IT ALSO GUIDES THE COMMERCIAL BANKS & SERVES AS A LENDER OF LAST RESORT.

IT CONTROLS THE CREDIT SYSTEM IN INDIA. IT BRINGS ABOUT UNITARY CREDIT POLICY IN THE ECONOMY.

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