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Explain the Monetary policy. - Economic Applications

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Question

Explain the Monetary policy.

Answer in Brief

Solution

The RBI prepares monetary policy to counteract inflation or deflation in the Indian economy. The goal of this policy is to balance the money supply in the economy. The tool set includes both quantitative and qualitative methods. The Central Bank uses many ways to balance the money supply.

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Monetary Policy
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2023-2024 (February) Official
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