Question

Consider the following statements about monetary policy: 1. The Reserve Bank of India (RB

  • I uses monetary policy to regulate money supply and interest rates. 2. Expansionary monetary policy involves increasing interest rates to control inflation. 3. Monetary policy is used to stabilize the economy by targeting inflation and growth. Which of the above statements are correct?
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2, and 3
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