WBCS.LIVE practice question

The monetary policy of India is framed by

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. The Government of India
  2. The Reserve Bank of India
  3. The State Bank of India
  4. None of the above

Correct answer and explanation

Correct answer: The Reserve Bank of India

Explanation: āœ… Correct Answer: B) The Reserve Bank of India šŸ“š Explanation: The Monetary Policy of India is formulated and implemented exclusively by the Reserve Bank of India (RBI). Through tools like the repo rate and cash reserve ratio, the RBI aims to maintain price stability while ensuring sufficient credit for economic growth. Since 2016, this policy is decided by a six-member Monetary Policy Committee (MPC).