Tuesday, February 2, 2010

monetary policy

monetary policy
The policy undertaken by the government and the central bank or control the money in order to fulfil some definite economic objectives is known as monetary policy . In modern age all activities related to monetary policy of every country are carried out by the central bank through its credit control. this carries out its general functions by changing bank rate and cash fund ratio. when using monetary policy widely the monetary policy as well as non-monetary policy that effects the quantity of money and cost are included under it. monetary policy instead of being the some all the time changes according to the situation and the requirement of the economic. so change of monetary policy at different times is due to price stability. stability in exchange rate ,full payment, economic growth etc.

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