BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Annual budget of Central Govt
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Credit and monetary policy of RBI
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Foreign trade policy of DGFT
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Regulations issued by SEBI
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Detailed explanation-1: -The RBI Act states monetary policy as the employment of financial instruments under its control to standardise magnitudes such as credit availability, interest rates, and money supply to attain the ultimate goal of economic policy.
Detailed explanation-2: -Monetary policy is referred to as being either expansionary or contractionary. Expansionary policy occurs when a monetary authority uses its procedures to stimulate the economy.
Detailed explanation-3: -RBI uses a Credit control monetary policy strategy to ensure that the country’s economic development is accompanied by stability. It means that banks will not only contain inflationary trends in the economy but will also stimulate economic growth, resulting in increased real national income stability in the long run.
Detailed explanation-4: -Central banks have four main monetary policy tools: the reserve requirement, open market operations, the discount rate, and interest on reserves. 1 Most central banks also have a lot more tools at their disposal.