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write in word QUESTION NO: 3 (10 Marks) Credit is very important for the functioning of any economy. It helps in the development of the
write in word
QUESTION NO: 3 (10 Marks) Credit is very important for the functioning of any economy. It helps in the development of the country but extension of more credit does not make a healthy economy. So it is the responsibility of the Central Bank to control the credit. Hence the Central Bank uses different tools to maintain the availability of credit in economy. Following are the qualitative tools used by the Central Bank to control credit: a. Moral Suasion b. Rationing of credit c. Publicity How the Central Bank is applying these quantitative tools in maintaining stable economy? Describe each tool with examplesStep by Step Solution
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