The policy of the RBI that influences the monetary and other financial conditions in the country with the objectives of price stability and sustainable growth is known as the__________.

Monetary Policy

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Budget Policy

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Growth Policy

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Fiscal Policy

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Solution

The correct option is A Monetary Policy
RBI stands for Reserve Bank of India. It is the central bank of India. It is the apex bank and has the sole authority to issue and manage currency in India. Only RBI can issue currency on behalf of the Indian Government. It also manages the money supply in the economy by exercising monetary policy. By definition, the policy of the RBI that influences the monetary and other financial conditions in the country with the objectives of price stability and sustainable growth is known as th monetary policy.

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Similar questions

Consider the following statements and choose the option which is correct.

(1) Inflation targeting focuses mainly on achieving price stability as the ultimate objective of Monetary policy.

(2) Monetary policy & fiscal policy have to converge for achievement of inflation targeting.

(3) The basket of items in CPI does not include machinery, chemicals etc.

Which of the following is not an objective of the monetary policy of RBI?

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