Accommodative monetary policy is when a central bank uses its monetary policy tools to stimulate economic growth. This can be done by lowering interest rates, increasing the money supply, or using other methods to make credit easier to obtain.
The goal of this type of policy is to increase aggregate demand in the economy and boost economic growth. It is often used during periods of economic downturn or when inflation is low.
Accommodative monetary policy is sometimes referred to as an "easy money policy."
What is accommodative stance of RBI monetary policy?
The accommodative stance of RBI monetary policy refers to the central bank's policy of keeping interest rates low in order to encourage economic growth. This policy is usually used during periods of economic slowdown, when businesses are struggling and investment is low. By keeping interest rates low, the RBI makes it cheaper for businesses to borrow money and invest in new projects. This, in turn, should help to boost economic growth and create jobs. Which of the following is a correct statement about accommodating monetary policy? There are two main types of accommodation monetary policy: expansionary monetary policy and contractionary monetary policy.
Expansionary monetary policy is when a central bank increases the money supply in order to stimulate the economy. This is done in order to lower interest rates and increase lending and investment.
Contractionary monetary policy is when a central bank decreases the money supply in order to slow the economy. This is done in order to raise interest rates and decrease lending and investment.
When a central bank takes an accommodative stance it means? When a central bank takes an accommodative stance, it means that it is trying to promote economic growth by making credit easier to obtain. This can be done by lowering interest rates, buying government bonds, or engaging in other activities that increase the money supply.
What are the three types of monetary policy?
The three types of monetary policy are expansionary monetary policy, contractionary monetary policy, and neutral monetary policy.
Expansionary monetary policy is when the money supply is increased in order to stimulate economic growth. This is done by lowering interest rates and making it easier for people to borrow money.
Contractionary monetary policy is when the money supply is decreased in order to slow down economic growth. This is done by raising interest rates and making it harder for people to borrow money.
Neutral monetary policy is when the money supply is neither increased nor decreased. This is done by keeping interest rates the same. What are the two main aims of monetary policy? The two main aims of monetary policy are to maintain price stability and to support the economic recovery.