Question
As per the Monetary Policy Framework Agreement signed
between the Government of India and the Reserve bank of India in 2015, what is the primary objective of the monetary policy?Solution
A new “Monetary Policy Framework” Agreement was signed between the Government of India and RBI in Feb 2015. As per the new monetary policy framework agreement, following are the important points: - • The objective of the monetary policy is to primarily maintain price stability, while keeping in mind the objective of growth • The monetary policy framework is operated by RBI • The inflation target is 4% with a band of +/- 2%
Select the option that is related to the third term in the same way as the second term is related to the first term.
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