Which of the following would be effects of a dearer monetary policy?

High interest rates
High productivity
High price level
Increased money supply

LohaHridoy

4 views

2025-01-04 04:42

1 Answers

AhmedNazir

Option 1 : High interest rates

The correct answer is High interest rates

A dear money policy would cause RBI to release less amount of money in the public which can only happen if the borrowing rates are increased for the public.
The actual tone of the monetary policy stance of RBI is set by its first monetary policy of the year announced beginning every financial year, gaining its clues from the annual budget announcements.
There are few types of monetary policy stances, which keep coming into media from time to time -
- A neutral stance means interest rates may move either way - upward or downward.
- Calibrated tightening means interest rates can only move upward.
- Accommodative Stance (also known as Expansionary Stance) means the injection of more funds into the financial system.
- A contractionary Stance means taking out funds from the financial system.
- Hawkish Stance means the contractionary stance aimed at checking inflation from rising.

4 views Answered 2022-09-04 04:29

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