1.

Control of credit is an important function of RBI. Explain. Or What is the influence of control of credit in the economy?

Answer»

The control of credit is an important function of RBI. The RBI increases the money supply in Indian economy through the distribution of printed currency and through credit creation. This is made possible by bringing about changes in the rate of interest. As rate of interest increases, volume of loans decreases and vice versa.



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