BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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control inflation
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discourage hoarding of commodities
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encourage flow of credit into neglected sector
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All of the above
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Detailed explanation-1: -The three objectives are: (1) Price Stability or Control of Inflation, (2) Economic Growth, and (3) Exchange Rate Stability.
Detailed explanation-2: -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-3: -The primary objective of monetary policy is Price stability. The price stability goal is attained when the general price level in the domestic economy remains as low and stable as possible in order to foster sustainable economic growth.
Detailed explanation-4: -As per the Reserve Bank of India Act 1934, the following are the primary objectives of the RBI: To govern the issue of bank notes. The central bank maintains reserves intending to secure monetary stability in the country. To run the currency and credit systems of the nation to its benefit.
Detailed explanation-5: -Monetary policies are meant to control the money supply in the economy.