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Variation in Cash Reserve Ratio and Open Market Operations are instruments of
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- Budgetary policy
- Trade policy
- Fiscal policy
- Monetary policy
- Budgetary policy
Correct Option: D
Bank Rate Policy, open market operations and variation of Cash Reserve Ratios, etc. are instruments of monetary policy. With the help of these instruments, the Reserve Bank of India controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.
