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how the Central Bank impacts the overall economy
Solution
the central bank employs various techniques to create balance in the economy-expansionary and
contractionary. Pursuing Open Market Operations, setting Reserve Ratios, change the bank rate
are some of the techniques. Regulation of consumer credit or Direct Action & Rationing of credit
indirectly impact the economy. Increasing interest or decreasing interest rate through above
techniques influence inflation and directly impact the economy.

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how the Central Bank impacts the overall economySolutionthe ce.pdf

  • 1. how the Central Bank impacts the overall economy Solution the central bank employs various techniques to create balance in the economy-expansionary and contractionary. Pursuing Open Market Operations, setting Reserve Ratios, change the bank rate are some of the techniques. Regulation of consumer credit or Direct Action & Rationing of credit indirectly impact the economy. Increasing interest or decreasing interest rate through above techniques influence inflation and directly impact the economy.