why the monetary measures taken by the government to control price rise?
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Answer: There is vast variety of financial assets in the economy such as cash, Bank , deposit etc. People can use various assets to make transaction no single asset is used for all transaction because it is hard to judge which asset should be included in the money supply, various measures of money supply are available. The Central Bank of India of United states in India use different measures of money supply.
In India the reserve Bank of India uses four measures of money supply namely M1 M2 M3 M4 broadly, this measures different from each other in terms of different degrees of liquidity and different rate of return and intrest rate.
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