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Describe four monetary tools that the government of Kenya can employ to arrest the run-away inflation.

      

Describe four monetary tools that the government of Kenya can employ to arrest the run-away
inflation.

  

Answers


gideon
i. Open market operations - this is by selling government securities to public commercial banks
with less to lent.
ii. Cash/ration by in increasingly the cash /highly quality reduces the amount the commercial banks
are left with i.e. land.
iii. Selection credit control -by withstanding the commercial banks to allow only a few sectors to
borrow from them.
iv. Compulsory deposit -by instructing the commercial banks to deposit more less with their central
bank this limiting the amount available to give of.
v. Moral suasion – this is arguing the commercial banks to exercise restraint in lending money to
the public.
gideon1 answered the question on September 25, 2017 at 10:27


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