EPFO 2015 English Medium Solved Paper

Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
Expansionary monetary policy affects the rate of interest and level of income. Expansionary monetary policy is when a central bank uses its tools to stimulate the economy.