Components of Monetary Policy

Monetary policy comprises tools used by the central bank (RBI in India) to manage money supply and credit. Bank rate (interest rate at which RBI lends to commercial banks) and Open market operations (buying/selling of securities) are core instruments of monetary policy. Public debt and public revenue are components of fiscal policy, not monetary policy. Fiscal policy is the domain of the government's budgeting and taxation, while monetary policy is the domain of the central bank's management of liquidity and credit. > Key Insight: Monetary Policy = RBI's domain (Bank rate, OMO, CRR, SLR). Fiscal Policy = Government's domain (Tax, Spend, Debt, Revenue). Answer: (c).