New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    With reference to Indian economy, which of the given

    statement is/are component/components of Monetary Policy?
    A Interest Rates Correct Answer Incorrect Answer
    B Open market operations Correct Answer Incorrect Answer
    C Public debt Correct Answer Incorrect Answer
    D Public Revenue Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    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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