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Essay Details:
Essay text:
It deals with both the lending and borrowing rates of interest for commercial banks. The Monetary Policy aims to maintain price stability, full employment and economic growth. The Reserve Bank of India is responsible for formulating and implementing Monetary Policy. It can increase or decrease the supply of currency as well as interest rate, carry out open market operations, control credit and vary the reserve requirements.
Objectives:
The objective of price stability has, however, gained further importance following the opening-up of the economy and the deregulation of financial markets in India in recent times...
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