What is the main goal of the RBI's monetary policy framework?
Practice Questions
Q1
What is the main goal of the RBI's monetary policy framework?
Economic growth
Price stability
Employment generation
Balance of payments stability
Questions & Step-by-Step Solutions
What is the main goal of the RBI's monetary policy framework?
Step 1: Understand what RBI stands for. RBI means Reserve Bank of India, which is the central bank of India.
Step 2: Learn what monetary policy means. Monetary policy is how a central bank controls the money supply and interest rates in the economy.
Step 3: Identify the main goal of the RBI's monetary policy. The main goal is to achieve price stability.
Step 4: Understand what price stability means. Price stability means keeping prices of goods and services from rising too quickly (inflation) or falling too much (deflation).
Step 5: Recognize why price stability is important. Price stability is essential for sustainable economic growth, which means the economy can grow steadily over time without big ups and downs.
