Which of the following is not a component of monetary policy in India?

Question

YESPYQ · Accepted Answer

Correct answer: d) Public Debt. Public Debt (Government Debt) is the debt owed by the government, whereas monetary policy is framed and implemented by the RBI. Monetary policy tools include Repo Rate, Moral Suasion, and Credit Rationing, which are directly controlled and employed by the Reserve Bank of India (RBI). Public Debt does not fall within the ambit of RBI's monetary policy measures and is managed separately by the government. Public debt includes the total liabilities of the Union government that have to be paid from the Consolidated Fund of India, and it is a key indicator of the government's financial health. Almost a fourth of the government expenditure goes into interest payment, highlighting the significant impact of public debt on government finances. Hence, the correct answer is "Public Debt."

Which of the following is not a component of monetary policy in India?

Practice more SSC CGL Economy PYQs