Monetary Policy as an arm of the economic policy is administered by

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Government of India
B	Reserve Bank of India
C	State Bank of India
D	Governments of the respective states

Explanation:

Detailed explanation-1: -Overview. Under the Reserve Bank of India, Act, 1934 (RBI Act, 1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.

Detailed explanation-2: -Fiscal policy is a means to use government spending and taxation to influence the economic situation. It is different from the monetary policy that is under the control of the central bank in that country.

Detailed explanation-3: -The primary goal of monetary policy of RBI is to maintain price stability keeping in mind the objectives laid out in the economic plan. Price stability is extremely important for attaining sustainable growth. To maintain price stability, inflation must be kept in check.

Detailed explanation-4: -Central banks conduct monetary policy by adjusting the supply of money, usually through buying or selling securities in the open market.

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