It is 28th January, Meena and Ritu are discussing about government budget which is going to be presented in the Parliament on 1st February. Ritu said, " We must listen to the government budget live as it is an important monetary policy instrument.". What do you think about Ritu's statement?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: The statement is false
Government budget falls under the "Fiscal" policies of the government and not monetary policies. "Monetary" policy refers to a set of actions by RBI to control a nation's overall money supply.