BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is the basic objective of R.B.I’s monetary policy?
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To control deficit in the balance of payment
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To control public expenditure
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To control deficit of the budget
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To control cost & availability of money
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Explanation:
Detailed explanation-1: -“…the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.”
Detailed explanation-2: -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-3: -Repo rate is the rate at which the central bank of a country lends money to commercial banks. Repo rate is used by monetary authorities to control inflation.
Detailed explanation-4: -Monetary policies are meant to control the money supply in the economy.
There is 1 question to complete.