Question
_______________________ is an agreement reached between
Government and the central bank in India – the Reserve Bank of India (RBI) - on the maximum tolerable inflation rate that RBI should target to achieve price stability.Solution
Monetary Policy Framework Agreement is an agreement reached between Government and the central bank in India – the Reserve Bank of India (RBI) - on the maximum tolerable inflation rate that RBI should target to achieve price stability. The Reserve Bank of India and Government of India signed the Monetary Policy Framework Agreement on 20 February 2015 which made inflation targeting and achieving price stability the responsibilities of RBI.
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