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. Promoting only imports
C. Maximising inflation
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 concept of 'Economic Rent' in classical economics refers to:
A. Payment for the use of capital only
B. Payment for the use of land arising from its scarcity
C. Profit of the entrepreneur
D. Wages of labour

Correct Answer: Option B


Explanation:
In classical economics, economic rent is the payment made for the use of land (or other resources in fixed supply) that arises due to its scarcity and differential fertility.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on export of services is:
A. 5%
B. 18%
C. 28%
D. zero-rated

Correct Answer: Option D


Explanation:
Export of services is zero-rated under GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Tobin's q' is defined as:
A. The ratio of the market value of installed capital to its replacement cost
B. The ratio of consumption to income
C. The ratio of investment to saving
D. The ratio of money supply to GDP

Correct Answer: Option A


Explanation:
Tobin's q is the ratio of the market value of a firm's capital to the replacement cost of that capital. Investment is encouraged when q > 1 and discouraged when q < 1.

This question belongs to: Economy GK Economy Set 1