answersLogoWhite

0

It means to decrease, or lower, the money supply.

EXAMPLE: The feds sold treasury bonds and bills in order to contract (decrease) money supply.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

What does contract and indebtedness mean?

It means that some says that you owe them money and they have a contract that says this.


What is a supply contract?

A supply contract is a kind of agreement that a dealer makes to the supplier. The supply contract has some elements like where is the product be submitted and the payment terms.


How do changes in interest rates impact the money supply?

Changes in interest rates can impact the money supply by influencing borrowing and lending behavior. When interest rates are low, it becomes cheaper to borrow money, leading to increased spending and investment, which can expand the money supply. Conversely, when interest rates are high, borrowing becomes more expensive, leading to decreased spending and investment, which can contract the money supply.


What is quality theory of money?

by quality of money we mean other thing remaining same when the supply of money does not effects the price level


What is a EMC contract?

Ernest Money Contract - receipted purchase contract


What is mean consideration and promise?

Mean consideration refers to something of value exchanged by parties in a contract, such as money or services. Promise is a commitment made by one party to do something or refrain from doing something in the context of a contract or agreement. Both mean consideration and promise are essential elements of a legally binding contract.


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.


What does fund actually mean?

As a Noun in means Money, or a collection of gathered money to draw from or to use in investments. As a verb it means to financially back a project, or supply money to.


Where do you get a contract from seller to buyer?

Many office supply stores have blank contract forms of all types.


Can you get out of a used car dealer contract if no money was put down?

No. Putting money down has nothing to do with a contract.


How does raising the discount rate affect the money supply?

Decreases the money supply


Do you have supply of money in India ppt?

there are four measure of money supply in india,