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what is monetary policy
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Answer Posted / neelam kumar pradhan
Hii Friends, I am back once again.. giving interview on 30
april.
The Monetary and Credit Policy is the policy statement,
traditionally announced twice a year, through which the
Reserve Bank of India seeks to ensure price stability for
the economy.
These factors include - money supply, interest rates and
the inflation. In banking and economic terms money supply
is referred to as M3 - which indicates the level (stock) of
legal currency in the economy.
Besides, the RBI also announces norms for the banking and
financial sector and the institutions which are governed by
it. These would be banks, financial institutions, non-
banking financial institutions, Nidhis and primary dealers
(money markets) and dealers in the foreign exchange (forex)
market
Neelam kumar pradhan.
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