What How ANS

Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the United States, to achieve certain objectives related to the money supply and interest rates in an economy. The main goal of monetary policy is to promote economic stability and achieve sustainable economic growth. There are several specific objectives that central banks may pursue in order to achieve this broader goal. These can include: Price stability: One of the most important goals of monetary policy is to maintain price stability, or low and stable inflation. Inflation, which is an increase in the general price level of goods and services over time, can have negative consequences for an economy if it becomes too high. For example, high inflation can lead to uncertainty and unpredictability, which can discourage investment and consumption. It can also lead to redistribution of wealth, as those who hold assets or fixed income streams may see their purchasing power decline. On the ot...

The bank plays an important role in the business organization and individual ones. There are mainly three types of the bank account. They are as follows: 1. Saving Account Saving bank account is useful in saving a generation, especially for individuals and households It carries a moderate rate of interest on deposit interest is allowed on the lowest credit balance kept in a particular Period. It is not useful for a businessman. For opening the deposit for saving account is provides with a passbook. At the time of withdrawn of money, the depositor is required to present his passbook together with withdrawn form. Nowadays, cheque facility is allowed if a certain minimum balance is maintained by the depositor. It has limited withdrawal facilities. 2. Fixed Deposit Account In this account, Money is deposited only once and can be withdrawn only after the expiry of the agreed maturity period. The rate of interest is the highest in such account. The fixed deposit is not suitable fo...