ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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I’m insulted by this question
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Money supply
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Exchange rates
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Interest rates
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Detailed explanation-1: -Public Debt (Government Debt) is the debt owed by the government. Whereas monetary policy is framed, devised, and implemented by the RBI. Public Debt does not fall in the ambit of RBI and can never be a part of monetary policy.
Detailed explanation-2: -Monetary policy is commonly classified as either expansionary or contractionary. The Federal Reserve commonly uses three strategies for monetary policy including reserve requirements, the discount rate, and open market operations.
Detailed explanation-3: -Out of the given options, deficit financing is not a monetary tool.
Detailed explanation-4: -Based on the above discussion we can conclude that, reducing fiscal deficit is not an objective of the Monetary Policy of Reserve Bank of India.