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Introduction
- Monetary Policy is the process by which a central bank, such as the Reserve Bank of India (RBI), controls the supply of money and credit in the economy.
- The main objectives of monetary policy are to ensure price stability, control inflation, promote economic growth, and maintain employment levels.
- Key tools of monetary policy include Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate.
Objectives
Introduction
- Monetary Policy is the process by which a central bank, such as the Reserve Bank of India (RBI), controls the supply of money and credit in the economy.
- The main objectives of monetary policy are to ensure price stability, control inflation, promote economic growth, and maintain employment levels.
- Key tools of monetary policy include Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Repo Rate, and Reverse Repo Rate.
Objectives