ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Federal Reserve sets U.S. monetary policy and the New York Fed plays a central role in implementing it. The Fed’s economic goals prescribed by Congress are to promote maximum employment, stable prices, and moderate long-term interest rates.

Detailed explanation-2: -Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

Detailed explanation-3: -The Reserve Bank of India controls the monetary policy in India.

Detailed explanation-4: -Monetary policy is adopted by the monetary authority of a country that controls either the interest rate payable on very short-term borrowing or the money supply. The policy often targets inflation or interest rate to ensure price stability and generate trust in the currency.