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

Question
Which of the following is the primary objective of monetary policy in India?
A. Reducing fiscal deficit
B. Maximising tax revenue
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.
This question belongs to: Economy GK Economy Set 1
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Practice More Economy Set 1 Questions

Question #1
Tax buoyancy measures the responsiveness of:
A. expenditure to revenue
B. tax revenue to changes in GDP without discretionary changes
C. imports to exports
D. tax revenue to changes in GDP including discretionary changes
Discuss
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Correct Answer: Option D

Explanation:
Tax buoyancy includes both automatic and discretionary changes in tax revenue relative to GDP growth.
This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is an example of Foreign Portfolio Investment?
A. Setting up a wholly owned subsidiary
B. Establishing a joint venture
C. Buying equity shares in Indian companies without acquiring control
D. Acquiring a 51% stake in an Indian company
Discuss
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Correct Answer: Option C

Explanation:
Buying shares without acquiring control is portfolio investment.
This question belongs to: Economy GK Economy Set 1
Question #3
The 'International Poverty Line' of the World Bank is currently set at:
A. USD 5.50 per day
B. USD 1.00 per day
C. USD 2.15 per day in 2017 PPP
D. USD 10 per day
Discuss
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Correct Answer: Option C

Explanation:
The World Bank's international poverty line is USD 2.15 per day in 2017 PPP.
This question belongs to: Economy GK Economy Set 1
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