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Option 3 : 1 and 2

The correct answer is 1 and 2.

  • The monetary policy tool is implemented by the RBI through open market operations, bank rate, CRR, SLR, the repo rate, reverse repo rate.
  • The bank rate is the rate of interest at which RBI charges while lending loans to a commercial bank. 
  • The Open market operations are conducted by the RBI by the way of sale and purchase of Government Securities (G-Secs) to adjust liquidity in the market.

  • Public debt is the total amount that is borrowed by the government to meet its development budget.
    • It includes the total liabilities of the Union government that have to be paid from the Consolidated Fund of India.
  • The income of the government through taxes, fees, sale of public goods and services, fines, donations, etc are known as public revenue.
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