Question

the
ic
steps to control price rise :
(1) Monetary Measures : (1) Bank : i.e. the Reserve Bank
in different savings. Thus, due to lack of funds betting, speculation hoarding are stopped and
teering is controlled (iii) Because of increase in bank rate, commercial banks have to increase is
ing rate. So, proportion of lending decreases. Due to increase in rate of interest, excess money
stretched from betting and comes back to economy in the form of savings. So rate of capital
vestment increases. New fields of business and employment are opened. (iv) Due to increase in
serve funds of banks, branch of commercial banks are controlled. Decrease in lending is there
By selling Government securities in the open market, cash reserve of commercial banks and
is reduced. As there is decrease in supply of money in the hands of people, consumable, expense
ture reduces, resulting in control of price rise.
strategy with respect to publica
money circulation in the economy. As a result, a leash is imposed on the spending tendency
RBI increases rate of interest through lending policy. Loan or credit becomes expensive which
people increases due to increasing rate of interest as well as there is increase in deposits, investimet explanation of it​

Answer 1

Answer:

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