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In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).
- a)Restriction
- b)Release
- c)Either (a) or (b)
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
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In the present COVID 19 times, many economists have raised their conce...
Explanation:
Supervision of Commercial Banks
As a member of the high-powered committee constituted by the Reserve Bank of India (RBI), one of the key roles is to oversee the operations of commercial banks. This involves ensuring that commercial banks comply with the regulations set by the RBI and operate in a manner that is conducive to the stability of the banking system and the economy as a whole.
Money Supply
Money supply refers to the amount of money that is in circulation in the economy. The RBI is responsible for regulating the money supply in the country. In the present COVID-19 times, there is a concern that the Indian economy may face a deflationary situation due to reduced economic activities in the country. This can lead to a decrease in the money supply in the economy, which can further exacerbate the economic situation.
Release of Money Supply
To prevent a deflationary situation, it is important to ensure that there is an adequate supply of money in the economy. As the supervisor of commercial banks, the RBI can ensure the release of money supply by instructing commercial banks to increase lending to the economy. This can be done by reducing the reserve ratio requirements or by providing liquidity to banks through open market operations.
Conclusion
In conclusion, as a member of the high-powered committee constituted by the Reserve Bank of India (RBI), it is important to ensure that the money supply in the economy is adequate. This can be achieved by releasing money supply through commercial banks, which can be supervised by the RBI.
Supervision of Commercial Banks
As a member of the high-powered committee constituted by the Reserve Bank of India (RBI), one of the key roles is to oversee the operations of commercial banks. This involves ensuring that commercial banks comply with the regulations set by the RBI and operate in a manner that is conducive to the stability of the banking system and the economy as a whole.
Money Supply
Money supply refers to the amount of money that is in circulation in the economy. The RBI is responsible for regulating the money supply in the country. In the present COVID-19 times, there is a concern that the Indian economy may face a deflationary situation due to reduced economic activities in the country. This can lead to a decrease in the money supply in the economy, which can further exacerbate the economic situation.
Release of Money Supply
To prevent a deflationary situation, it is important to ensure that there is an adequate supply of money in the economy. As the supervisor of commercial banks, the RBI can ensure the release of money supply by instructing commercial banks to increase lending to the economy. This can be done by reducing the reserve ratio requirements or by providing liquidity to banks through open market operations.
Conclusion
In conclusion, as a member of the high-powered committee constituted by the Reserve Bank of India (RBI), it is important to ensure that the money supply in the economy is adequate. This can be achieved by releasing money supply through commercial banks, which can be supervised by the RBI.
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In the present COVID 19 times, many economists have raised their conce...
Increase/release of money in the economy will lead to increase in demand leading to increase in employment to deal with the above situation.
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In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
Solutions for In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).a)Restrictionb)Releasec)Either (a) or (b)d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
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