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Yogesh Kenjale

· started a discussion

· 1 Months ago

Fiscal policy is of govt (Question: 189388.0 )

Fiscal policy is decided by government

Question:

Which policy of the Reserve Bank of India does not deal in fixing Interest rates?

Options:
A)

Monetary Policy

B)

Expansionary policy

C)

Contractionary policy

D)

Fiscal Policy

E)

Credit Policy

Solution:

Monetary policy is the process by which the Reserve Bank of India controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. Monetary policy includes credit policy which Includes discriminatory rate of interest on certain types of advances: Expansionary lowering of interest rates to expand business and Contractionary policy to slow inflation. Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.

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