Which of the following is a major objective of monetary policy in a developing country like India? MCQ with Answer and Explanation

Question
Which of the following is a major objective of monetary policy in a developing country like India?
A. Only maximising fiscal deficit
B. Only promoting imports
C. Price stability consistent with growth and financial stability
D. Only maximising inflation
Answer: Option C
Solution (By JKSSB Mock Tests)
The primary objective of monetary policy in India is to maintain price stability while keeping in mind the objective of growth, along with ensuring financial stability.
This question belongs to: Economy GK Economy Set 1
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Question #1
Which of the following is a feature of the 'Paris Agreement' on climate change?
A. A treaty limited to developed countries only
B. A legally binding set of identical emission targets for all countries
C. Only a voluntary declaration without any reporting requirements
D. A global framework under which countries submit nationally determined contributions to limit global warming
Discuss
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Correct Answer: Option D

Explanation:
The Paris Agreement establishes a framework in which each party submits successive nationally determined contributions (NDCs) outlining its climate actions, with the collective aim of limiting global temperature rise.
This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Carbon Border Adjustment Mechanism' proposals?
A. Only export subsidies for green goods
B. A complete ban on all imports
C. A levy on imports based on their embedded carbon content to prevent carbon leakage and protect domestic climate policies
D. Only domestic carbon taxes without border measures
Discuss
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Correct Answer: Option C

Explanation:
A carbon border adjustment mechanism imposes a charge on imported goods equivalent to the domestic carbon price, thereby reducing the risk of carbon leakage and maintaining the competitiveness of domestic producers.
This question belongs to: Economy GK Economy Set 1
Question #3
In the context of cost, the relationship between Average Cost (AC) and Marginal Cost (MC) is:
A. When MC < AC, AC is rising
B. MC is always greater than AC
C. When MC = AC, AC is minimum
D. When MC > AC, AC is falling
Discuss
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Correct Answer: Option C

Explanation:
When Marginal Cost equals Average Cost, Average Cost is at its minimum. If MC is below AC, AC falls; if MC is above AC, AC rises.
This question belongs to: Economy GK Economy Set 1
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