Which policy is primarily used by the Reserve Bank of India (RBI) to promote inc
Practice Questions
Q1
Which policy is primarily used by the Reserve Bank of India (RBI) to promote inclusive growth?
Monetary policy
Fiscal policy
Trade policy
Industrial policy
Questions & Step-by-Step Solutions
Which policy is primarily used by the Reserve Bank of India (RBI) to promote inclusive growth?
Step 1: Understand what the Reserve Bank of India (RBI) is. It is the central bank of India responsible for managing the country's monetary policy.
Step 2: Learn about monetary policy. It is a tool used by the RBI to control the supply of money and interest rates in the economy.
Step 3: Recognize the goal of inclusive growth. This means making sure that all sections of society have access to financial resources and opportunities.
Step 4: See how the RBI uses monetary policy to influence interest rates. Lower interest rates can make loans cheaper, encouraging people and businesses to borrow money.
Step 5: Understand that by making credit more available, the RBI helps more people access finance, which supports inclusive growth.
