A. Buy government securities/ decrease the discount rate {confirmed}
India is one of the fastes growing economy
The bank rate identifies the interest rate which banks charge each other to make loans among themselves. The dominating rate, also called the discount rate, is usually set by a country's main bank. In the United States, this is the Federal Reserve Bank. The power of the bank rate is in its ability to control the money supply.If the Federal Reserve sets a high rate of interest, this would mean that banks would be required to pay high interest rates on loans among themselves. The interest rates would be transferred to the public at higher points. High rates would mean money would be slow to flow among banks and among the public. In a sense it would imply slowing down the liquidity of the money supply.By setting low rates, the Federal Reserve is, in effect, loosening the money supply. Banks would borrow more money from each other and this would place more money out into the general market. The flow of money would be liquid. More people would approach banks for loans and the business climate would overall improve.In the U.S., the Federal Open Market Committee governs the Federal Reserve and consists of a seven-member Board of Governors appointed by the president and approved by the senate for 14-year terms. The president appoints one member as chairman. The committee also has presidents from each of the 12 Federal Reserve banks that cover the U.S. Only four members of these 12 have voting rights on a yearly rotating basis.The president of the Federal Reserve Bank of New York sits on the board as the executive who is in charge of executing Federal Reserve policy.The Fed pursues "monetary policy" by manipulating the bank rate to correct problems in the economy. Such policies should work to relieve an economy of distress from periods of recessions. The lower the rates, there should be likewise effects on mortgage rates throughout the country.An alternative to using bank rates to affect economic change is for the government to adopt "Keynesian" economic policy of spending money.
Monetary policy
It generally indicates whether an economy is picking up or slowing down.
Monetary policy: The Federal Reserve can decrease the discount rate, reserve requirement, or buy bonds. The first two in that list will decrease interest rates, thus making people more willing to buy things such as houses and cars and making corporations want to invest more. By selling bonds, the government is buying from the people, which means that people will have more money to spend, etc. When people buy/invest more, the GDP (gross domestic production) increases, and that counters economic slowdowns. Fiscal policy: The government decreases taxes allowing for people to have more extra money to buy things with. The government can buy more things itself, also increasing GDP.
Waste reduction and recycling could lead to less spending in the society and less production. This could have the impact of slowing down the economy if done on a large scale.
Federal Reserve Chairman Alan Greenspan told Congress yesterday that U.S economic growth appeared to be slowing, heading off for the moment any need to raise interest rates. Wall Street responded with a cheer, sending stocks and bonds soaring.
The nation's economy was slowing down in the worst way. President Harding went to work to fix the economy. (1) Reduce Spending, (2) Reduce Taxes, Etc...
The nation's economy was slowing down in the worst way. President Harding went to work to fix the economy. (1) Reduce Spending, (2) Reduce Taxes, Etc...
slowing down.
The economy is slowing down
its when something is slowing down