Question

Which statements correctly describe the roles and responsibilities of the Reserve Bank of India (RB

  • I ? Statements:  1. The RBI formulates and implements India's monetary policy.  2. The RBI uses tools such as the repo rate and cash reserve ratio (CR
  • R to control inflation and manage liquidity.  3. The Ministry of Finance is responsible for setting the repo rate in India.
A Statements 1 and 2 only
B All statements are correct
C Statements 2 and 3 only
D Statements 1 and 3 only
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