Question
With reference to Indian economy, which of the given
statement is/are component/components of Monetary Policy?Solution
Monetary policy instruments are of two types namely qualitative instruments and quantitative instruments. The list of quantitative instruments includes Open Market Operations, Bank Rate, Repo Rate, Reverse Repo Rate, Cash Reserve Ratio, Statutory Liquidity Ratio, Marginal standing facility and Liquidity Adjustment Facility (LAF). Qualitative Instruments refer to direct action, change in the margin money and moral suasion. Public Debt and Public revenue is not part of monetary policy.
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