Q.Explain any four objectives of monetary policy.

Monetary policy is not run for its own sake — it is aimed at specific, stated macroeconomic goals that the RBI's Monetary Policy Committee keeps in view while setting tools like the repo rate. …

Four of the principal objectives of monetary policy:

1. Price stability — keeping inflation within a targeted band (currently a flexible inflation-targeting framework) so that the purchasing power of money does not fluctuate sharply, protecting savers and fixed-income groups.
2. Economic growth — ensuring an adequate and timely flow of credit to productive sectors of the economy so investment and output can expand.
3. Exchange-rate stability — avoiding excessive volatility in the value of the rupee against other currencies, which affects foreign trade and investment. …

Listing objectives as single words ('growth', 'stability') without a sentence of explanation each is usually marked as in …