Monetary Policy

Monetory Policy as an arm of the economic policy is administered by

The central bank is schedued to annouce its first midquarter review of monetary policy for 2012-13. The Reserve Bank of India (RBI) has cut the rates for first time in three years. In its annual credit policy, RBI has slashed short - term lending rate or repo by 0.50 bps. The RBI has hinted at cut in intereset rates. Moderation in infations due to lower economic growth and cooling global oil prices provides room for easing monetary policy. (a) It may be good for all depositors who are planning to make invetments. (b) It's benficial for all home loan, auto laon, personal loan borrowers because of low interest rate. (c) The sagging economy has prompted concern about balance of payments of the country. (d) The cut in the polivy in repo rate in an indication of decelerating of the country . Which of the following statements (a),(b),(c) and (d) is definitely the cause of cut in key rates of RBI?

The central bank is schedued to annouce its first midquarter review of monetary policy for 2012-13. The Reserve Bank of India (RBI) has cut the rates for first time in three years. In its annual credit policy, RBI has slashed short - term lending rate or repo by 0.50 bps. The RBI has hinted at cut in intereset rates. Moderation in infations due to lower economic growth and cooling global oil prices provides room for easing monetary policy. (a) It may be good for all depositors who are planning to make invetments. (b) It's benficial for all home loan, auto laon, personal loan borrowers because of low interest rate. (c) The sagging economy has prompted concern about balance of payments of the country. (d) The cut in the polivy in repo rate in an indication of decelerating of the country . Which of the following (a),(b),(c) and (d) is definitely false in the context of the passage ?

The central bank is schedued to annouce its first midquarter review of monetary policy for 2012-13. The Reserve Bank of India (RBI) has cut the rates for first time in three years. In its annual credit policy, RBI has slashed short - term lending rate or repo by 0.50 bps. The RBI has hinted at cut in intereset rates. Moderation in infations due to lower economic growth and cooling global oil prices provides room for easing monetary policy. (a) It may be good for all depositors who are planning to make invetments. (b) It's benficial for all home loan, auto laon, personal loan borrowers because of low interest rate. (c) The sagging economy has prompted concern about balance of payments of the country. (d) The cut in the polivy in repo rate in an indication of decelerating of the country . Which of the following statements (a),(b),(c) and (d) is definitely an effect according to the passage ?

Distinguish between monetary and non-monetary incentives.