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Question

What is the important measure taken by the central bank to keep money supply under control?
  1. Fiscal Policy
  2. Monetary Policy
  3. Overvaluation
  4. Revaluation

A
Overvaluation
B
Revaluation
C
Monetary Policy
D
Fiscal Policy
Solution
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The important measure taken by central bank to keep money supply under control is called monetary policy. The Central Bank increases public confidence in the monetary system of the country. It brings profit to the public exchequer. It brings uniformity in the monetary system .

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