BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Monetary policy is a way for the RBI to control the supply of money in the economy. So these credit policies help control the inflation and in turn help with the economic growth and development of the country.

Detailed explanation-2: -At the macroeconomic level, the amount of money circulating in an economy affects things like gross domestic product, overall growth, interest rates, and unemployment rates. The central banks tend to control the quantity of money in circulation to achieve economic objectives and affect monetary policy.

Detailed explanation-3: -Since the early 1990s, the Reserve Bank has used an inflation target to achieve its monetary policy objectives. Maintaining low and stable inflation is important for achieving sustainable growth in economic activity and employment.

Detailed explanation-4: -The monetary policy is a policy formulated by the central bank, i.e., RBI (Reserve Bank of India) and relates to the monetary matters of the country. The policy involves measures taken to regulate the supply of money, availability, and cost of credit in the economy.