Economy, asked by prateekgoel3922, 9 months ago

What kind of monetary policy could be formed by reserve bank of India to correct the situation of inflation.

Answers

Answered by tshivom9

To control inflation, the RBI sells the securities in the money market which sucks out excess liquidity from the market. As the amount of liquid cash decreases, demand goes down. This part of monetary policy is called the open market operation.

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