Page 1 - Lesson Note-47 (1)

SAI INTERNATIONAL SCHOOL

ECONOMICS

Class-XII

CHAPTER 9

Excess Demand and Deficient Demand

(Module- 47)

TOPICS TO BE COVERED-

- Policy measures to control Excess demand and Deficient demand

- Monetary policy Quantitative and qualitative measures

- Fiscal policy

There are two policy measures to solve the problem of excess demand
and deficient demand, such as: -

1. Monetary policy measures
2. Fiscal policy measures

Monetary policy measures

Quantitative Measures Qualitative Measures

Bank Rate Imposing margin

Repo Rate requirement

Moral suasion
Reverse Repo Rate

Open Market Operation

Selective credit
Varying Legal Reserve Ratio
control

Cash Reserve Statutory liquidity

Ratio (CRR) Ratio (SLR)