What Is a Monetary Policy in Economics?

What Is the Meaning of Monetary Policy?

What Are the Types of Monetary Policy?

What Are the Goals of Monetary Policy in India?

What Are the Tools of Monetary Policy?

FAQs About Monetary Policies

What are the prevailing rates of monetary policy in India?

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As per current reports, the prevailing rates of the Reserve Bank of India (RBI) stand at a 4% policy repo rate, 3.35% reverse repo rate, 4.25% marginal standing facility rate, and 4.25% bank rate.

On which factors do the monetary depend?

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In India, monetary policy depends on economic statistics like gross domestic product (GDP), inflation rate, and industrial and sector-based growth rates.

What do you mean by quantitative monetary policy?

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The quantitative policy is a monetary policy wherein a country's central bank attempts to increase liquidity in its financial system, usually by buying long-term government bonds from its leading banks. By doing so, they can fuel economic growth by making banks lend or invest effortlessly.

Is taxation an important tool of monetary policy?

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In India, taxation is considered a significant and authoritative monetary policy instrument for the public authorities that considerably influence the changes in investment, disposable income and consumption.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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