what are the policies used by banks,???
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The central bank influences interest rates by expanding or contracting the monetary base, which consists of currency in circulation and banks' reserves on deposit at the central bank. Central banks have three main tools of monetary policy: open market operations, the discount rate and the reserve requirements
krishh2001:
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hey.........
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Central banks conduct Monetary Policy by adjusting the Supply of money generally through Open Market Operations. For instance , a Central bank may purchase governments debt from commercial banks and there by increase the money Supply ( a technique called " monetary easing " ) .
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Central banks conduct Monetary Policy by adjusting the Supply of money generally through Open Market Operations. For instance , a Central bank may purchase governments debt from commercial banks and there by increase the money Supply ( a technique called " monetary easing " ) .
.
.
.
i hope this helps u.
.
mark me brainliest plz plz plz plz
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