The primary objective of the Reserve Bank of India's monetary policy is to: MCQ with Answer and Explanation

The primary objective of the Reserve Bank of India's monetary policy is to:
A. manage government expenditure
B. maintain price stability while keeping in mind the objective of growth
C. maximize exports
D. eliminate fiscal deficit
Answer: Option B
Solution (By JKSSB Mock Tests)
The RBI's monetary policy aims primarily to maintain price stability while supporting economic growth.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a measure of absolute poverty commonly used in India?
A. Gini coefficient
B. Relative income share of the bottom 10%
C. Poverty line based on calorie norms and consumption expenditure
D. Lorenz curve

Correct Answer: Option C


Explanation:
India has traditionally used a poverty line based on minimum calorie requirements and corresponding consumption expenditure to measure absolute poverty.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Ways and Means Advances' are given by RBI to:
A. central and state governments to bridge temporary mismatches in receipts and expenditures
B. foreign governments
C. commercial banks
D. NBFCs

Correct Answer: Option A


Explanation:
Ways and Means Advances are short-term advances by RBI to governments to bridge temporary mismatches.

This question belongs to: Economy GK Economy Set 1
Question #3
The term 'Primary Market' in the capital market refers to:
A. Market for issue of new securities
B. Market for trading existing securities
C. Market for agricultural commodities
D. Market for short-term funds only

Correct Answer: Option A


Explanation:
The primary market is the market where new securities are issued by companies or governments for the first time to raise capital. The secondary market deals with existing securities.

This question belongs to: Economy GK Economy Set 1