Question
Consider the following Statements. (I) The
primary objective of the RBI’s monetary policy is to maintain price stability while keeping in mind the objective of growth. (II) RBI Act, 1934 provides the floor inflation rate at 4%. (III) The Monetary Policy committee is formed by the RBI as per the provisions of RBI Act.Solution
Monetary policy refers to the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the Act. The primary objective of the RBI’s monetary policy is to maintain price stability while keeping in mind the objective of growth. Price stability is a necessary precondition to sustainable growth. The amended RBI Act, 1934 also provides for the inflation target (4% +-2%) to be set by the Government of India, in consultation with the Reserve Bank, once in every five years. Hence the floor inflation rate is 2%. MPC is constituted by the Central Government.
Mahima’s expenditure and savings are in the ratio 5 : 3. Her income increases by 15%. Her expenditure also increases by 18%. By how many % does he sav...
- If Sohan’s monthly salary is (75/3)% more than Rohan’s salary, then by what percentage is Rohan’s salary less than Sohan’s?
The income of ‘R’ is thrice more than that of ‘S’. The expenditure of ‘R’ is Rs. 3600, which is twice that of ‘S’. If the savings of ‘...
The ratio of the income and savings of Michael is 6:2, respectively. If his expenditure increases by an amount which is equal to 25% of his initial savi...
The incomes of C and D are in the ratio 9:6, while their expenditures are also in the same ratio of 9:6. What is the ratio of the savings of C to that o...
The income ratio of Carlos to Diego is 4:9. Both individuals save ₹1200 each. If the ratio of their expenditures is 5:13, determine Diego's total expe...
- In 2019 when his income was Rs. 40,000, Ramesh spent 50% of his income and saved the rest. In 2020, if his income increased by 10% and his expenditure incr...
Ramesh spends 40% of his income and divides the remaining income among his wife and children (a daughter and a son) in the ratio of 3:4, respectively. I...
- In 2021, Rahul uses 78% of his monthly earnings. In 2022, his income increased by 28%, and he raised his expenditure by 18%. Calculate the percentage growt...
Find X's monthly income if the combined income of X and Y amounts to Rs. 36,000, and both X and Y spend 75% and 80% of their incomes, respectively, with...
Relevant for Exams:
