Current Affairs Exam > Current Affairs Questions > Consider the following statements:1. A moneta...
Start Learning for Free
Consider the following statements:
1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.
2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.
2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.
Which of the statements given above is/are not correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements:1. A monetary policy that lowers int...
In News: Recently, there has been a rise in global commodity prices that is being billed as a new commodity super cycle.
Statement is 1 correct: A monetary policy that lowers interest rates and stimulates borrowing is an expansionary monetary policy or loose monetary policy. It increases the money supply in order to lower unemployment, boost private-sector borrowing and consumer spending, and stimulate economic growth.
Statement 2 is correct: A monetary policy that raises interest rates and reduces borrowing in the economy is a contractionary monetary policy or tight monetary policy. It slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation. While sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.
Statement is 1 correct: A monetary policy that lowers interest rates and stimulates borrowing is an expansionary monetary policy or loose monetary policy. It increases the money supply in order to lower unemployment, boost private-sector borrowing and consumer spending, and stimulate economic growth.
Statement 2 is correct: A monetary policy that raises interest rates and reduces borrowing in the economy is a contractionary monetary policy or tight monetary policy. It slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation. While sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.
|
Explore Courses for Current Affairs exam
|
|
Similar Current Affairs Doubts
Top Courses for Current AffairsView all
Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for Current Affairs 2025 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Current Affairs 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for Current Affairs 2025 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Current Affairs 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Current Affairs.
Download more important topics, notes, lectures and mock test series for Current Affairs Exam by signing up for free.
Here you can find the meaning of Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements:1. A monetary policy that lowers interest rates and stimulates borrowing is a loose monetary policy.2. A monetary policy that raises interest rates and reduces borrowing in the economy is a tight monetary policy.Which of the statements given above is/are not correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Current Affairs tests.
|
|
Explore Courses for Current Affairs exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup