Explain the different instruments of Monetary Policy.Explain the diffe

Question

Explain the different instruments of Monetary Policy.Explain the different instruments of Monetary Policy.

28 Jul 2022

Answer :

Word Count : 454

The main instruments of the monetary policy are Cash Reserve Ratio, Statutory Liquidity Ratio, Bank Rate, Repo Rate, Reverse Repo Rate, and Open Market Operations.

Monetary Policy of India

Monetary Policy of RBI: Monetary policy refers to the credit-control measures adopted by the central bank of a country. In the case of the Indian economy, RBI is the sole monetary authority that decides the supply of money in the economy.

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