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Q: Why central bank controls money supply?
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Related questions

Why is the supply of money in an economy not solely determined by central bank?

The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.


Who controls the supply of money in the us?

The Federal Reserve System, a quasi-governmental body, is the central bank that controls the supply of money and/or currency in circulation. The actual production of currencies is by the Department of the Treasury, which operates the US Mints and the Bureau of Engraving and Printing.


Who controls the printing of money?

Central Bank or any Monetary Authority of that country controls the printing of money.


What is the adjustment of an economys money supply by a central bank?

Monetary policy


What agencies determined money supply?

Money supply is determined exogenously by the monetary authority usually central bank of a country.


What refers to the adjustment of an economy's money supply by central bank?

A+ answer: monetary policy


What refers to the adjustment of an economy's money supply by a central bank?

A+ answer: monetary policy


When a central bank influences the growth of the money supply it is carrying out?

Monetary Policy


What about fiscal policy is not true?

It refers to the adjustment of an economy’s money supply by a central bank.


Define the role of central bank and as a credit controller?

As a credit controller, central bank controls the volume of credit for maintaining monetary stability. It is the leader in the money market.


What statement about fiscal policy is not true?

It refers to the adjustment of an economy’s money supply by a central bank.


What is the meaning of repo rate by RBI of India?

Discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system. To temporarily expand the money supply, the central bank decreases repo rates (so that banks can swap their holdings of government securities for cash), to contract the money supply it increases the repo rates. Alternatively, the central bank decides on a desired level of money supply and lets the market determine the appropriate repo rate.