Question

Define monetary policy? discuss the objectives and tools of monetary policy in india.

Answer 1

Monetary policy is the process by which the monetary authority of a country like the central bank or currency board. 1-It involves the influence on the level. 2-As the objectives of monetary policy varies from country to country and from time to time. 3-Neutrality of money 4-Exchange stability 5-price stabilty

Answer 2

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The Qualitative Instruments are also known as the Selective Tools of monetary policy. These tools are not directed towards the quality of credit or the use of the credit. This method can have influence over the lender and borrower of the credit. The Selective Tools of credit control comprises of following instruments

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