Which of the following is the primary objective of monetary policy in India?
A. Maximising tax revenue
B. Reducing fiscal deficit
C. Price stability while keeping in mind growth
D. Increasing government expenditure
Answer: Option C
Solution (By JKSSB Mock Tests)
As per the Monetary Policy Framework Agreement, the primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth.
Explanation:
Uncovered interest parity states that the interest rate differential between two currencies equals the expected rate of depreciation of the high-interest currency.
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