Question

Monetary policy actions do not influence inflation and economic output immediately; rather, they pass through a sequence of channels affecting lending rates, asset prices and expectations. This process is commonly referred to as:

A Credit Creation Mechanism
B Monetary Policy Transmission
C Liquidity Adjustment Process
D Financial Intermediation
E Inflation Targeting Framework
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)