10 Views

Question :  ___________ is a process where the central bank reduces the money supply in the economy.

 

Option 1: Contractionary monetary policy

Option 2: Expansionary monetary policy

Option 3: Quantitative easing

Option 4: Open market operations


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Contractionary monetary policy


Solution : The correct answer is (a) Contractionary monetary policy. 

Contractionary monetary policy refers to the actions taken by the central bank to reduce the money supply in the economy, typically with the aim of controlling inflation and curbing excessive economic growth. 

Contractionary monetary policy is employed when there is a need to control inflationary pressures or to address an overheating economy with excessive credit growth.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida M.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
SCSVMV Deemed to be Universit...
Apply
MBA At at SCSVMV | NAAC 'A' Grade | AICTE & UGC Aproved | 100% Placement Support | Merit-based Scholarships
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
RV University, Mysuru | B.Tec...
Apply
World-class and highly qualified engineering faculty. High-quality global education at an affordable cost
New Horizon College BBA Admis...
Apply
UG Admissions 2026 open| NAAC ‘A’ grade | Merit-based Scholarships available.
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books