The monetary policy in India uses which of the following tools? 1. B

June 1, 2025 by rawan239

The monetary policy in India uses which of the following tools?

1. Bank rate
2. Open market operations
3. Public debt
4. Public revenue

Select the correct answer using the code given below.

[amp_mcq option1=”1 and 2 only” option2=”2 and 3 only” option3=”1 and 4 only” option4=”1, 2, 3 and 4″ correct=”option1″]

This question was previously asked in

UPSC CDS-2 – 2017

Download PDF Attempt Online

The monetary policy in India, conducted by the Reserve Bank of India (RBI), uses tools like the Bank Rate and Open Market Operations.

Monetary policy aims to control the money supply, credit conditions, and interest rates to achieve macroeconomic objectives. Public debt and public revenue are instruments of fiscal policy, which is handled by the government.

Other monetary policy tools used by the RBI include the Repo Rate, Reverse Repo Rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), and Marginal Standing Facility (MSF). Fiscal policy involves government spending, taxation, and public borrowing (leading to public debt) and revenue.

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