Multiple choice

Interest Rate Policy is a part of

  1. fiscal policy

  2. industrial policy

  3. monetary policy

  4. national policy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest rates are set by the central bank (RBI in India) through tools like repo rate, reverse repo rate, and bank rate. This is monetary policy - managing money supply and credit. Fiscal policy deals with government revenue (taxation) and expenditure. Industrial policy regulates specific sectors. There is no 'national policy' as a formal economic framework.

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