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Showing posts with the label monetary policy

What is Monetary Policy

                          MONETARY POLICY  Monetary Policy is the process by which the monetary authority of a country controls the supply of money often targeting an Inflation rate or interest rate to price stability.  And general trust in the currency and economic growth and lower unemployment . *Monetary policy committee (MPL) , it consists of 6 members , 3 from RBI  and 3 from Govt of India. *RBI governor will  caste his vote in case of  a tie. * Monetary Policy  is of two types 1.Direct Instruments, 2. Indirect Instruments. *Direct Instrument                                                      1.CRR:- Cash Reserve Ratio,   2.SLR :- Statutory Liquidity Ratio,   3.Refinance Facilty. *Indirect Instrument  1. LAF :...