With reference to Indian economy, consider the following :
- Bank rate
- Open market operations
- Public debt
- Public revenue
Which of the above is/are component/components of Monetary Policy?
Detailed Explanation:
Monetary Policy instruments are tools used by the Reserve Bank of India (RBI) to control money supply and credit in the economy.
✅ Bank Rate (Statement 1): Rate at which RBI lends to commercial banks; a key quantitative tool of monetary policy.
✅ Open Market Operations (Statement 2): Buying/selling of government securities by RBI to control liquidity in the banking system.
❌ Public Debt (Statement 3): Total government borrowing; part of fiscal policy, not monetary policy.
❌ Public Revenue (Statement 4): Government income from taxes and non-tax sources; component of fiscal policy, not monetary policy.
Question 10 of 17 Monetary Policy
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