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Which institution is primarily responsible for conducting monetary policy in Ind

Practice Questions

Q1
Which institution is primarily responsible for conducting monetary policy in India?
  1. Ministry of Finance
  2. Reserve Bank of India
  3. Securities and Exchange Board of India
  4. World Bank

Questions & Step-by-Step Solutions

Which institution is primarily responsible for conducting monetary policy in India?
  • Step 1: Understand what monetary policy is. It is the process by which a country's central bank controls the money supply and interest rates.
  • Step 2: Identify the central bank of India. The central bank is the main institution that manages monetary policy.
  • Step 3: Learn that the central bank of India is called the Reserve Bank of India (RBI).
  • Step 4: Conclude that the RBI is responsible for conducting monetary policy in India.
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