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Business Studies

Economic Environment

Q. With refer...

Question

Q. With reference to the Indian economy, consider the following

Which of the above is/are a tool of Monetary Policy?

A

1 and 3 only

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B

2, 3 and 4

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C

1, 2 and 3

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D

1, 2 and 4

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Solution

The correct option is D 1, 2 and 4
Explanation:

RBI implements the monetary policy through

Quantitative tools like CRR, SLR, Bank Rate, Repo Rate, Reverse Repo Rate, Open market operations and

Qualitative tools like credit rationing, regulation of consumer credit and direct action.

Public debt is borrowed by the government to meet its development budget. It is not a Monetary Policy Tool.

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