Question:
When economists refer to "tight" monetary policy, they mean that the Reserve Bank of India is taking actions that will:
When economists refer to "tight" monetary policy, they mean that the Reserve Bank of India is taking actions that will:
Show Hint
A tight monetary policy is typically used to prevent an overheating economy and control inflation.
Updated On: Mar 25, 2025
- Increases the demand for money
- Decreases the demand for money
- Expand the supply of money
- Contract the supply of money
Hide Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
A "tight" monetary policy means reducing the money supply, which raises interest rates and reduces the demand for borrowing, thus helping to control inflation.
Was this answer helpful?
0
0
Top Questions on Monetary Policy
- Critically appraise infrastructural development in India during the British rule.
- CBSE CLASS XII - 2025
- Economics
- Monetary Policy
- Prime beneficiary of the Minimum Support Price (MSP) fixed by the government is ................ (Choose the correct option to fill in the blank)
- CBSE CLASS XII - 2025
- Economics
- Monetary Policy
- “Margin requirements are extremely helpful in correcting the situation of deflationary gap in an economy.”
Justify the given statement with valid arguments.- CBSE CLASS XII - 2025
- Economics
- Monetary Policy
- Read the following statements carefully:
Statement 1: Open Market Operations refers to purchase/sale of Government Securities (G-Sec) by the Central Bank.
Statement 2: To decrease money supply, Central Bank will sell the Government Securities to commercial banks.- CBSE CLASS XII - 2025
- Economics
- Monetary Policy
- Central Bank can decrease the money supply in the economy by ________ .
- CBSE CLASS XII - 2025
- Economics
- Monetary Policy
View More Questions
Questions Asked in BHU PET exam
- Which of the following is a Hermitian operator?
- BHU PET - 2019
- Quantum Mechanics
- Find out the next number in the series 97, 86, 73, 58, 45, (............):
- BHU PET - 2019
- Number Series
In the following Venn diagram, which of the following represents the educated men but not urban?
- BHU PET - 2019
- Venn Diagrams
- If a particle is fixed on a rotating frame of reference, the fictitious force acting on the particle will be:
- BHU PET - 2019
- Rotational motion
- Given the Bessel function:
$$ J_0(x) = 1 - \frac{x^2}{2^2} + \frac{x^4}{2^2 \cdot 2^2} - \frac{x^6}{2^2 \cdot 2^2 \cdot 2^2} + \dots $$ The Bessel function $ J_1(x) $ is given by:- BHU PET - 2019
- Special Functions
View More Questions