Multiple choice

Which of the following formulates, implements and monitors the monetary policy?

  1. Ministry of Finance

  2. State Bank of India

  3. Reserve Bank of India

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Reserve Bank of India (RBI) is India's central bank responsible for monetary policy formulation, implementation, and monitoring. The Ministry of Finance handles fiscal policy, while SBI is a commercial bank, not the monetary authority.

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