ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash reserve ratio
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Repo Rate
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Bank rate
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Blue chip
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Detailed explanation-1: -Which of the following words is not used in Monetary Policy? Explanation: The term blue chip is not related to monetary policy. Blue chip is an adjective given to a company which provides assured profit.
Detailed explanation-2: -Explanation: Blue chip is not considered while deciding the monetary policy of the country. Blue chip is called that company which gives safe returns to investors.
Detailed explanation-3: -Detailed Solution. Monetary policy is the macroeconomic policy laid down by the central bank. It is used to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
Detailed explanation-4: -Out of the given options, deficit financing is not a monetary tool.
Detailed explanation-5: -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).