Social Sciences, asked by krishh2001, 1 year ago

what are the policies used by banks,??? ​

Answers

Answered by ROCKSTARgirl
4

hello dear!!

your answer goes here:-

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: thank you.
Answered by anjali962
1
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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