Question
Given below are two statements, one is labelled as
Assertion (A) and the other as Reason (R): Assertion (A): Monetary policy has an indirect effect. Reason (R): Monetary policy is operated through the money market (commercial banks). Select the correct answer using the codes given below : Code:Solution
Assertion (A) and Reason (R) both are correct and Reason (R) correctly explains Assertion (A). Monetary Policy has an indirect effect because Monetary Policy is operated through the money market (commercial banks). Monetary Policy is determined and operated by the Central Bank.
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