The monetary policy of India refers to that policy that is concerned with the measures taken to regulate the volume of credit created by the banks. The main objectives of monetary policy are to achieve price stability, financial stability, and adequate availability of credit for growth. Following are the main elements of the monetary policy of India:It regulates the stocks and the growth rate of the money supply. It regulates the entire banking system of the economy. It determines the allocation of loans among different sectors. It provides incentives to promote savings and to raise the savings-income ratio. It ensures adequate availability of credit for growth and tries to achieve price stability. The government and RBI can use monetary tools like Cash Reserve Ratio, Statutory Liquidity Ratio, Margin Requirements, Ceiling On Level Of Credit, Open Market Operations, etc. in this regard. Thus, the central bank can significantly influence the savings, investments, and consumer spending in the economy through monetary policy. 1. The main goals of fiscal policy are to achieve and maintain full employment, reach a high rate of economic growth, and to keep prices and wages stable. 2. The main objective of any industrial policy is:to augment the industrial production and thereby enhance the industrial growth which leads to economic growth by optimum utilization of resources; modernization; balanced industrial development and regional development (by providing concessions for industrial development in backward areas); balanced development of basic and consumer industry; coordinated development of large as well as small, medium and cottage enterprises; determination of the area of operation under private and public sector; enhance cordial relations between workers and management and proper utilization of the domestic/foreign capital. 3. The main purpose of foreign exchange policy is to restore the balance of payments equilibrium, by allowing the imports only when they are necessary for the interest of the country and thus limiting the demands for foreign exchange up to the available resources. Thus, option 2 is the correct answer.