BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Soft loan policy
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Hard credit policy
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Tighten the regulations of money issue
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To reduce the quantity of money
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Detailed explanation-1: -Detailed Solution. Financial inclusion is the delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups. It is not a measure to control inflation. In economics, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.
Detailed explanation-2: -Inflation can be controlled by a contractionary monetary policy is one common method of managing inflation. A contractionary policy aims to reduce the supply of money within an economy by lowering the prices of bonds and rising interest rates. Thus, consumption falls, prices fall and inflation slows down.
Detailed explanation-3: -The RBI controls Inflation and Deflation by employing a variety of monetary policy tools such as Repo Rate, Reverse Repo Rate, Bank Rate, Open Market Operations, Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), Liquidity Adjustment Facility (LAF), Market Stabilisation Scheme.
Detailed explanation-4: -In the situation of inflation, the RBI aims to reduce the money supply. So, the RBI can increase CRR and/or SLR.