Get premium membership and access questions with answers, video lessons as well as revision papers.
• Increasing banking rate. An increase in bank rate leads to an increase in the interest rate charged by commercial banks which in turn discourages borrowing by businessmen and consumers.
• Sale of government securities. By selling government securities in the open market, the central bank directly reduces the cash reserves of the commercial banks because the central bank must be paid from the reserves. The fall in the cash reserves compels the banks to reduce their lending activities. This will reduce the money supply and hence the inflationary pressures in the economy.
• Higher reserve ratio. An increase in the minimum reserve ratio means that the member banks are required to keep larger reserves with the central bank this reduces the deposits of the banks and thus limits their power to create credit restrictions on credit expansion will control inflation.
• Selective credit control. The purpose of selective credit control measures is to influence specific type of credit while leaving other types of credit unaffected.
skilled writter answered the question on May 1, 2018 at 16:22
- Explain 7 effects of inflation.(Solved)
Explain 7 effects of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the various causes of inflation.(Solved)
Describe the various causes of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the classifications of inflation(Solved)
Describe the classifications of inflation
Date posted: May 1, 2018. Answers (1)
- State six feature of inflation(Solved)
State six feature of inflation
Date posted: May 1, 2018. Answers (1)
- Distinguish between risk control and risk financing(Solved)
Distinguish between risk control and risk financing
Date posted: May 1, 2018. Answers (1)
- Discuss four methods of handling risks(Solved)
Discuss four methods of handling risks
Date posted: May 1, 2018. Answers (1)
- Outline the steps involved in the risk management process.(Solved)
Outline the steps involved in the risk management process.
Date posted: May 1, 2018. Answers (1)
- State the meaning and explain objectives of risk management(Solved)
State the meaning and explain objectives of risk management.
Date posted: May 1, 2018. Answers (1)
- Explain the six parts of an insurance contract(Solved)
Explain the six parts of an insurance contract
Date posted: May 1, 2018. Answers (1)
-
State the exceptions to the principle of indemnity in insurance(Solved)
State the exceptions to the principle of indemnity in insurance
Date posted: May 1, 2018. Answers (1)
- Explain four requirements of a valid insurance contract.(Solved)
Explain four requirements of a valid insurance contract.
Date posted: May 1, 2018. Answers (1)
- Explain five requirements of an insurable risk.(Solved)
Explain five requirements of an insurable risk.
Date posted: May 1, 2018. Answers (1)
- Explain four characteristics of insurance(Solved)
Explain four characteristics of insurance
Date posted: May 1, 2018. Answers (1)
- State four elements that are required for an insurance transaction.(Solved)
State four elements that are required for an insurance transaction.
Date posted: May 1, 2018. Answers (1)
- Define the term insurance according to commission on insurance terminology of the American Risk.(Solved)
Define the term insurance according to commission on insurance terminology of the American Risk.
Date posted: May 1, 2018. Answers (1)
- State six functions of money(Solved)
State six functions of money
Date posted: May 1, 2018. Answers (1)
- Differentiate between money and wealth.(Solved)
Differentiate between money and wealth.
Date posted: May 1, 2018. Answers (1)
- Explain five ways in which privatization would be beneficial to country(Solved)
Explain five ways in which privatization would be beneficial to country
Date posted: May 1, 2018. Answers (1)
- Outline differences between hypermarkets and departmental stores(Solved)
Outline differences between hypermarkets and departmental stores.
Date posted: April 30, 2018. Answers (1)
- Importance of national income to an economy(Solved)
Importance of national income to an economy
Date posted: April 30, 2018. Answers (1)