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Questions and Answers
Explain a qualitative technique to control money supply in the economy.
Explain a qualitative technique to control money supply in the economy.
One qualitative technique to control money supply is through the use of credit controls, such as setting maximum limits on loans or credit extensions by banks.
Describe a quantitative technique to control money supply in the economy.
Describe a quantitative technique to control money supply in the economy.
A quantitative technique to control money supply is through the use of open market operations by central banks, such as buying and selling government securities to influence the amount of money in circulation.
What is one example of a qualitative technique and a quantitative technique to control money supply in the economy?
What is one example of a qualitative technique and a quantitative technique to control money supply in the economy?
An example of a qualitative technique is the imposition of reserve requirements on banks, while an example of a quantitative technique is the adjustment of the discount rate by the central bank.
