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Monetary Policy Video Lecture | Indian Economy for UPSC CSE
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FAQs on Monetary Policy Video Lecture - Indian Economy for UPSC CSE
| 1. What is the main goal of monetary policy? |  |
| 2. How does the central bank implement monetary policy? | |
Ans. The central bank implements monetary policy by using tools such as open market operations, reserve requirements, and discount rates to influence the money supply and interest rates in the economy.
| 3. How does expansionary monetary policy affect the economy? | |
Ans. Expansionary monetary policy involves increasing the money supply and lowering interest rates to stimulate economic growth, increase investment, and boost consumer spending.
| 4. What is the difference between monetary policy and fiscal policy? | |
Ans. Monetary policy is controlled by the central bank and involves managing the money supply and interest rates, while fiscal policy is determined by the government and involves taxation and government spending to influence the economy.
| 5. How does contractionary monetary policy help to control inflation? | |
Ans. Contractionary monetary policy involves reducing the money supply and raising interest rates to slow down economic growth, decrease investment, and control inflationary pressures in the economy.
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