| I. To ensure that inflation does not cross the limit. |
| II. To ensure that banks have enough liquidity. |
| III. To ensure that cost of fund does not reach a very high level. |
A) Only I
B) I and II
C) Only III
D) All of these
Correct Answer: D
Solution :
The RBI quarterly review the monetary policy to control the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.
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