BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raising the Bank Rates
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Raising the Reserve Ratio Requirements
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Purchasing securities in the Open Markets
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Rationing of the Credit
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Detailed explanation-1: -Which among the following can not be called an ant inflationary measure? Notes: The C is correct option. This is because Purchase of securities in the Open Markets would lead to more liquidity system and more liquidity means more money will chase the same goods.
Detailed explanation-2: -Rationing of the Credit Was this answer helpful?
Detailed explanation-3: -But, modern economists considered taxation as a better anti-inflationary measure as compared to public debt.
Detailed explanation-4: -Anti-inflationary fiscal policy involves adjustments in government expenditures, taxation and borrowing and debt management policies.
Detailed explanation-5: -Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term. Unlike inflation and deflation, which refer to the direction of prices, disinflation refers to the rate of change in the rate of inflation.