Money and banking

Indian Economy

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Expansionary monetary policy:

usually has no effect on a currency's exchange value.

tends to lead to a depreciation of the currencies of other nations.

tends to lead to an appreciation of a nation's currency.

tends to lead to a depreciation of a nation's currency.

Explanation:

Expansionary monetary policy- A policy by monetary authorities to expand money supply and boost economic activity, mainly by keeping interest rates low to encourage borrowing by companies, individuals and banks.
Expansionary monetary policy aims to increase aggregate demand and economic growth in the economy. Expansionary monetary policy involves cutting interest rates or increasing the money supply to boost economic activity.

By: Abhipedia

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