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Which monetary measure is to be adopted in correcting Inflationary
Increase in Bank Rate
Selling of Securities in Open Market
Increase in Cash Reserve Ratio
All the above
- Increase in Bank Rate: This raises the cost of borrowing, reducing consumer spending and business investments, thereby helping to control inflation.
- Selling of Securities in Open Market: When central banks sell securities, they withdraw money from the economy, decreasing money supply and curbing inflation.
- Increase in Cash Reserve Ratio: By increasing the CRR, banks are required to hold more reserves, reducing their capacity to lend money, which in turn helps in reducing the money supply within the economy.
- All the above: This option is correct because all these measures can help in correcting inflation by reducing the money supply and controlling demand.
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By: santosh ProfileResourcesReport error
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