-Bank rate :It’s the rate at which the central bank lends to commercial banks. The rate is raised in order to discourage borrowing and therefore reducing money supply.
-Open market operations: The central bank sells treasury bills and bonds in the market.
-Special deposits /compulsory deposits /minimum reserve requirements. These are raised upwards.
-Cash ratio/ liquidity ratio: The ratio is increased in order to reduce money supply.
- moral persuasion: The central bank may appeal /request/persuade credit rationing.
-Directives/ instructions to financial institution to landless
Kavungya answered the question on September 25, 2019 at 09:43
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