Which of the following is/are the objective(s) of our monetary policy?begin{enumerate}item To anchor inflation expectationsitem To actively manage liquidityitem To maintain interest rate regime consistent with price output and financial stabilityend{enumerate}

BANKING GENERAL KNOWLEDGE

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

Which of the following is/are the objective(s) of our monetary policy?

A	Only 1
B	All the above
C	Both 1 and 2
D	Only 2

Explanation:

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: -In this process, central banks through their monetary policy operations influence longer-term interest rates, overall economic activity and ultimately, prices. They aim to achieve price stability (low and stable inflation) over a period of time while minimising fluctuations in output and employment.

Detailed explanation-3: -Central banks use monetary policy to manage economic fluctuations and achieve price stability, which means that inflation is low and stable.

Detailed explanation-4: -The 6 tools of monetary policy are reverse Repo Rate, Reverse Repo Rate, Open Market Operations, Bank Rate policy (discount rate), cash reserve ratio (CRR), Statutory Liquidity Ratio (SLR).

There is 1 question to complete.