UPSC Exam > UPSC Videos > Famous Books for UPSC Exam (Summary & Tests) > Monetary Policy: Economics
Monetary Policy: Economics Video Lecture | Famous Books for UPSC Exam (Summary & Tests)
|
545 videos|966 docs|373 tests
|
FAQs on Monetary Policy: Economics Video Lecture - Famous Books for UPSC Exam (Summary & Tests)
| 1. What is monetary policy? |  |
Ans. Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the United States, to control and influence the money supply and interest rates in an economy. It is a tool used to achieve economic stability by managing inflation, unemployment, and overall economic growth.
| 2. How does monetary policy affect the economy? | |
Ans. Monetary policy affects the economy in various ways. When a central bank implements expansionary monetary policy, such as lowering interest rates or increasing the money supply, it stimulates borrowing and spending, which can lead to increased investment, job creation, and economic growth. Conversely, contractionary monetary policy, which involves raising interest rates or reducing the money supply, aims to control inflation but can also slow down economic activity.
| 3. What are the main instruments of monetary policy? | |
Ans. The main instruments of monetary policy include open market operations, reserve requirements, and the discount rate. Open market operations involve buying or selling government securities to influence the money supply. Reserve requirements refer to the percentage of deposits that banks must hold as reserves, which can be adjusted by the central bank to affect the lending capacity of commercial banks. The discount rate is the interest rate at which commercial banks can borrow funds from the central bank.
| 4. How does monetary policy impact inflation? | |
Ans. Monetary policy plays a crucial role in controlling inflation. When the central bank tightens monetary policy by raising interest rates or reducing the money supply, it aims to slow down spending and borrowing in the economy. This can help curb inflationary pressures by reducing consumer demand and controlling the growth of prices. On the other hand, expansionary monetary policy can stimulate inflation by encouraging spending and investment.
| 5. Can monetary policy address unemployment? | |
Ans. While monetary policy can indirectly influence employment levels, its primary objective is to maintain price stability and control inflation. By managing interest rates and the money supply, monetary policy can create an environment conducive to economic growth, which can lead to job creation and reduced unemployment. However, addressing unemployment requires a combination of monetary policy, fiscal policy, and structural reforms to boost productivity and enhance job opportunities.
Related Exams
About this Video
|
4.73/5 Rating |
|
Nov 21, 2024 Last updated |
Video Description: Monetary Policy: Economics for UPSC 2024 is part of Famous Books for UPSC Exam (Summary & Tests) preparation.
The notes and questions for Monetary Policy: Economics have been prepared according to the UPSC exam syllabus.
Information about Monetary Policy: Economics covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Monetary Policy: Economics.
Introduction of Monetary Policy: Economics in English is available as part of our Famous Books for UPSC Exam (Summary & Tests) for UPSC & Monetary Policy: Economics in
Hindi for Famous Books for UPSC Exam (Summary & Tests) course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for Monetary Policy: Economics Video Lecture | Famous Books for UPSC Exam (Summary & Tests) - UPSC full syllabus preparation | Free video for UPSC exam to prepare for Famous Books for UPSC Exam (Summary & Tests).
Information about Monetary Policy: Economics
Here you can find the meaning of Monetary Policy: Economics defined & explained in the simplest way possible.
Besides explaining types of Monetary Policy: Economics theory, EduRev gives you an ample number of questions to practice Monetary Policy: Economics tests,
examples and also practice UPSC tests.
|
545 videos|966 docs|373 tests
|
Video Timeline
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Monetary Policy: Economics Video Lecture | Famous Books for UPSC Exam (Summary & Tests)
,Objective type Questions
,Summary
,Previous Year Questions with Solutions
,Sample Paper
,Monetary Policy: Economics Video Lecture | Famous Books for UPSC Exam (Summary & Tests)
,ppt
,Exam
,study material
,video lectures
,practice quizzes
,Semester Notes
,shortcuts and tricks
,Free
,Important questions
,Monetary Policy: Economics Video Lecture | Famous Books for UPSC Exam (Summary & Tests)
,Viva Questions
,Extra Questions
,past year papers
,mock tests for examination
,MCQs
;
Study Monetary Policy: Economics on the App
Students of UPSC can study Monetary Policy: Economics alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Monetary Policy: Economics,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Monetary Policy: Economics is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup