Question

Explain how RBI used monetary policy during the recent economic slowdown?​

Answer 1

Answer:

The monetary policy states the use of financial instruments under the control of the Reserve Bank of India to standardise magnitudes such as availability of credit, interest rates, and money supply to achieve the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934.

Explanation:

Please mark me as Brainlist

Answer 2

The monetary policy of RBI can be used to control the supply of money and economic problems in any country.

Explanation:

• The monetary policy of the reserve bank of India this very helpful in controlling the slowdown of an economy.
• The RBI uses its tax rates such as the bank ratio, the reserve ratio, etc. to control the supply of money in the economy.
• When the money supply is controlled by the bank, situations such as inflation and economic slowdown can be controlled by the reserve bank.
• The bank mainly controls the supply of money to the banks in the economy by changing the rates.