Which of the following is a major objective of monetary policy in a developing country like India?
A. Price stability consistent with growth and financial stability
B. Only maximising fiscal deficit
C. Only promoting imports
D. Only maximising inflation
Answer: Option A
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.
Explanation:
Tax buoyancy is the ratio of the percentage change in tax revenue to the percentage change in GDP, reflecting both automatic and discretionary changes in the tax system.
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