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UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Fiscal and Monetary Policy

  • question_answer
          With reference to Indian economy, consider the following.                      [IAS Prelims 2014]
    1. Bank rate         
    2. Open market operations
    3. Public debt       
    4. Public revenue
    Which of the above is/are component/ components of Monetary Policy?

    A) 1 only              

    B)        2, 3 and 4

    C) 1 and 2            

    D)        1, 3 and 4

    Correct Answer: C

    Solution :

    The RBI implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasion and through many other instruments.


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