Describe the functions of the Reserve Bank regarding controlled monetary expansion.

1 year ago
Banking

The bank has made use of both traditional and quantitative methods of credit control, and selective or qualitative controls. The primary objective of credit control can be summed up in the phrase controlled monetary expansion’. In terms of this objective, the Reserve Bank has endeavoured to do two things:

(a) To control the supply of credit so as to curb the inflationary tendencies in the economy, and

(b) To make available adequate liquidity to meet the increasing developmental requirements of trade, industry, agriculture and other sectors of the economy

Susmita Sah
Jan 16, 2022
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