What are the techniques employed by rbi to control the supply of money?
Answers
Answered by
5
RBI controls money supply in the market through various tools and measures. CRR - Cash Reserve Ratio is the proportion of total deposits that the banks are required to maintain with the RBI has reserves. If RBIincreases this repo rate, it becomes costlier for the commercial banks to borrow moneyfrom RBI.
Similar questions