V It is the substantial

and rapid increase in

the general price level
causing a decline in
the purchasing power
of money.
V According to
Ã
 d inflation
is a Dz 
 

 

 


 
.dz
V Úeduces savings
V Discourages foreign capital
V Encourages Hoarding
V Encourages speculation
activities
V Úeduces volume of production
V Fall in quality of goods and
services
V Increase in gap between rich
and poor
V Unequal distribution of wealth
î
ETAÚ
îEASUÚES

FISCAL
îEASUÚES

THEÚ
îEASUÚES
×UA
TITATIVE îEASUÚES
Ȉ Bank Úate
Ȉ Cash Úeserve Úatio (CÚÚ
Ȉ Statutory Liquidity Úatio (SLÚ
Ȉ pen îarket perations ( î 

×UALITATIVE îEASUÚES
Ȉ îargin Úequirement
Ȉ Credit Úationing
Ȉ îoral Persuasion
Ȉ Direct Action
V   
 It is  
 so as to
make credit dearer to discourage
spending by consumers and
businessmen.
V Ã 


  It is  

so that the commercial banks
have to keep larger reserves with
the central bank and thusd
deposits of banks are reduced
and their lending powers are
limited.
V 3   It is  
 and thus
banks have to retain greater proportion of their
liquid assets making loanable funds dearer.
V

 


 

!"Central bank
resorts to the 
 the government securities to drain
away excess money from the hands of public.
V  


 It is  
 in order to reduce
the amount of loan one can get against a security.
V Ã
  During inflationd loan facilities for
instalment buying are 

 to minimum to check
consumption buying.
It is done by raising initial paymentd increasing
length of payment period and by covering a large
number of goods.
V  #
  Central Bank 
 the
member banks to comply to its policies.

V u
$ It is the  
alternative
available to central bank in order to make a member
bank comply to its policies.
V  % " These are 


so that people are left with
lesser disposable income to
spend on goods and
services.
V #&%

 It is


 during inflation so
that further increase in
public demand can be
avoided.
V #&  Government  
& 
money from the public so that the excess
purchasing power is curbed.
V u
'  Government should &  from
the practice of financing deficits by printing new
currency notes.
As far as possibled it should be done through savings
and taxation.
V Expansion of output
V Population Control
V Proper Wage Policy
V Encouragement to
savings
V ver valuation of
domestic currency
V Ashish Arora 10524
V Ravina Gandhi 10555
V Gagandeep Kaur 10563

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