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Start learning 50% faster. Sign in nowThe primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth. Price stability is a necessary precondition to sustainable growth. In May 2016; the Reserve Bank of India (RBI) Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework. The amended RBI Act also provides for the inflation target to be set by the Government of India, in consultation with the Reserve Bank, once in every 5 years. Accordingly, the Central Government has notified in the Official Gazette 4 % Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 % and the lower tolerance limit of 2%
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The risk that the bank will not receive funds from its counter-parties on the due date is called
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I. Capital Receipts
II. Capital Payments
III. Capital Spending
Whi...
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A. it is always good to exa...
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