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Question : Which of the following is not a monetary policy instrument of RBI?

Option 1: Government Spending

Option 2: Bank Rate

Option 3: Open Market Operations

Option 4: Cash Reserve Ratio


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Government Spending


Solution : The correct answer is Government spending .

Government Spending is not a monetary policy instrument of the Reserve Bank of India (RBI). The other options - Bank Rate, Open Market Operations and Cash Reserve Ratio - are indeed monetary policy instruments used by the RBI to regulate the money supply, and influence economic conditions. Government spending, on the other hand, falls under fiscal policy and is primarily determined by the government rather than the central bank.

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