Understanding the Function of Monetary Policy | Testbook.com

Last Updated on Jul 31, 2023
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Monetary policy plays an integral role in maintaining the economic stability of a country. It aims to manage liquidity, stimulate economic growth, and control inflation by adjusting interest rates and regulating the money supply. For a more detailed understanding of how this works, check out our article on The Reserve Bank of India: Functions and Composition.

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Frequently Asked Questions

The function of monetary policy is to control liquidity, growth, inflation by managing interest rates and supply of money.

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