Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Under which policy the RBI keeps control of money supply for achieving the general economic objective?

Options:

Fiscal Policy

Monetary Policy

Industrial Policy

None of the above

Correct Answer:

Monetary Policy

Explanation:

The Reserve Bank of India (RBI) keeps control of money supply for achieving general economic objectives through Monetary Policy. Monetary policy involves the management of money supply and interest rates by a central bank (such as the RBI) to achieve specific economic goals, including controlling inflation, promoting economic growth, and maintaining financial stability.