The policy of which of the following is usually referred to as 'Monetary Policy'?

Options :
  1. Moneylenders
  2. Government
  3. Commercial Banks
  4. Central Bank
Answer and Explanation :-

Answer: Option 4


Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI). RBI Monetary Policy in India is aimed at managing the quantity of money in order to meet the requirements of different sectors of the economy and to increase the liquidity.

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