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What is Understanding Monetary Policy Tools in India about?
Monetary policy controls the supply of money in an economy through interest rates to achieve goals of stable prices and low unemployment. It can be expansionary, increasing the money supply rapidly to combat recession, or contractionary, decreasing supply slowly to combat inflation. In India, the Reserve Bank of India executes monetary policy through tools like the bank rate, cash reserve ratio, statutory liquidity ratio, repo rate, and reverse repo rate. At its most recent policy meeting, the RBI increased
- Author
- Srishti Vasdev
- Language
- EN