What is it?
Quantitative Finance
Level
2
In a socialist economy, the government often deals with the Cash Reserve Ratio of the economy. Is this a monetary policy or not? If yes the what type of a monetary measure is it?
Check out the set Quantitative Finance questions
Yes, Quantitative
Yes, Qualitative
No
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1 solution
Dealing with the Cash Reserve Ratio is a quantitative monetary measure. During inflation and deflation the Government increases or decreases it respectively to decrease or increase the money supply in the economy. It is a general measure and not a selective measure making it a quantitative measure.