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Monetary policy can encourage savings in the economy by offering attractive interest rates, as higher savings promotes more investment. It can also redistribute income and wealth by controlling inflation and directing credit to weaker sectors of society, favoring weaker sections of the population.
Monetary policy can encourage savings in the economy by offering attractive interest rates, as higher savings promotes more investment. It can also redistribute income and wealth by controlling inflation and directing credit to weaker sectors of society, favoring weaker sections of the population.
Monetary policy can encourage savings in the economy by offering attractive interest rates, as higher savings promotes more investment. It can also redistribute income and wealth by controlling inflation and directing credit to weaker sectors of society, favoring weaker sections of the population.
RBI by offering attractive interest rates encourage savings in the economy. A high rate of saving promotes investment. Thus the monetary management by influencing rates of interest can influence saving mobilization in the country.
2. Redistribution Of income And Wealth :-
By control of inflation and deployment of credit to weaker sectors of society the monetary policy may redistribute income and wealth favoring to weaker sections