Ask Question
BusinessBusiness
21 October, 13:16

The part of the money supply produced by the private banking system is called by the government or central bank is called?

+2
Answers (1)
  1. 21 October, 15:09
    0
    Open Market Operation is the system in which the Central Bank supply money to the private banks.

    Explanation:

    The Reserve bank buy as well as sale the government securities so that it can control money supply. By selling and buying securities in a free market the amount of money is either expanded or contracted.

    During inflation the price of the product rises, at that time the Reserve Bank purchase the securities so that money is not spend but in the other hand during deflation there is fall in the price as a result the Reserve Bank sale the securities so that purchase can be done.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The part of the money supply produced by the private banking system is called by the government or central bank is called? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Steve Jobs has achieved a great deal of success. What are some possible negative consequences of the level of power that he holds?
Answers (1)
What business unit within most companies produces the periodic reports, statements and analysis, such as annual reports, that are disseminate to investors?
Answers (1)
You borrowed $20,000 to finance the education expenses for your senior year of college at the beginning of your senior year. The loan will be paid off over five years and the first installment will be due a year later.
Answers (1)
Since only a few firms dominate the oligopoly market, cutthroat competition does not exist. a. True b. False
Answers (1)
Which of the following is NOT an example of an employee benefit? Sick days Vacation days Income Educational reimbursements
Answers (1)
New Questions in Business
Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are as follows. Jan. 2 Invested $15,000 cash in the business in exchange for common stock.
Answers (1)
Laser world reports net income of $520,000. depreciation expense is $37,000, accounts receivable increases $11,000, and accounts payable decreases $17,000. calculate net cash flows from operating activities using the indirect method.
Answers (1)
Which of the following statements is correct regarding the components of the master budget? (A) The cost of goods sold budget is used to create the selling and administrative expense budget.
Answers (1)
Galla Inc. operates in a highly competitive market where the market price for its product is $181 per unit. Galla desires a $19 profit per unit. Galla expects to sell 6,100 units.
Answers (1)
uppose that in the small town, Prairie, there are only two cable providers. What type of market structure does the local cable market have? monopolistic competition perfect competition duopoly monopoly
Answers (1)
Home » Business » The part of the money supply produced by the private banking system is called by the government or central bank is called?
Sign Up Forgot Password?