Multiple Choice Questions on Dear Money Policy implies ........ for Combined State Civil Services Preparation

Money and banking

Indian Economic System(CSC)

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Indian Economy - Understanding the basics of Indian economic system

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Study Notes

    Dear Money Policy implies

    high price level

    Incorrect Answer

    large money supply

    Incorrect Answer

    high production

    Incorrect Answer

    high interest rates

    Correct Answer
    Explanation:

    4th option is correct. Dear Money Policy- A policy in which a government reduces the amount of money being spent in an economy by raising interest rates, making it more expensive to borrow money. Also known as "tight money".


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