The monetary policy in India uses which of the following tools ? 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue Select the correct answer using the code given below :

CDS 2017 PYQ with Answer — The monetary policy in India uses which of the following tools ? 1. B…

2017 · Q30

The monetary policy in India uses which of the following tools ?

1Bank rate
2Open market operations
3Public debt
4Public revenue

Select the correct answer using the code given below :

General KnowledgeIndian Economy

A1 and 2 only
B2 and 3 only
C1 and 4 only
D1, 2, 3 and 4

Explanation

India's monetary policy, conducted by the Reserve Bank of India, operates through instruments such as the bank rate (the policy-rate framework) and open market operations. Public debt and public revenue are fiscal policy instruments wielded by the government through the budget, not monetary tools. The monetary policy tools among the list are therefore 1 and 2 only.