ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which type of institution is responsible for conducting monetary policy?
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a central bank
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a commercial bank
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a multinational company
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a trade union
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Explanation:
Detailed explanation-1: -Central banks conduct monetary policy by adjusting the supply of money, usually through buying or selling securities in the open market.
Detailed explanation-2: -In India, the central monetary authority is the Reserve Bank of India (RBI). It is designed to maintain the price stability in the economy.
Detailed explanation-3: -The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. The Federal Reserve controls the three tools of monetary policy–open market operations, the discount rate, and reserve requirements.
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