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

Which of the following is a major objective of monetary policy in India?
A. Maintaining price stability while keeping in mind the objective of growth
B. Maximising inflation
C. Promoting only imports
D. Maximising the fiscal deficit
Answer: Option A
Solution (By JKSSB Mock Tests)
Under the Monetary Policy Framework Agreement, the primary objective of the RBI is to maintain price stability while keeping in mind the objective of growth.

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Practice More Economy Set 1 Questions

Question #1
The term 'Special Drawing Rights' can be used by member countries of the IMF for:
A. Only financing fiscal deficit
B. Only purchasing gold
C. Settling international payments and as a reserve asset
D. Only domestic transactions

Correct Answer: Option C


Explanation:
SDRs are international reserve assets that can be exchanged for freely usable currencies and used in transactions among IMF members and prescribed holders.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'consumer price index' for rural and urban areas separately is compiled by:
A. National Statistical Office
B. Labour Bureau
C. RBI
D. Ministry of Finance

Correct Answer: Option A


Explanation:
CPI-Rural and CPI-Urban are compiled by the NSO.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'forward market' in foreign exchange deals with:
A. immediate delivery of currencies
B. only government transactions
C. only spot transactions
D. delivery of currencies at a future date at a predetermined rate

Correct Answer: Option D


Explanation:
The forward market deals with contracts for future delivery of currencies at predetermined rates.

This question belongs to: Economy GK Economy Set 1