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  • Question
  • What is the basic objective of monetary policy?


  • Correct Answer
  • Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency The basic objective of monetary policy is to assist the economy in achieving a full-employment, noninflationary level of total output Cause-effect chain: Changes in the money supply affect interest rates, which affect investment spending and therefore aggregate demand 

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    More questions

    • 1. When was the first elevator built?

    • Options
    • A. 1743
    • B. 1739
    • C. 1760
    • D. 1785
    • Discuss
    • 2. The hardest form of carbon is

    • Options
    • A. coke
    • B. graphite
    • C. diamond
    • D. charcoal
    • Discuss
    • 3. The mica belt of the Himalayas, the major part of it is situated in

    • Options
    • A. Andhra Pradesh
    • B. Bihar
    • C. Rajasthan
    • D. West Bengal
    • Discuss
    • 4. The first 'Financial Service Park' for industry being set up at

    • Options
    • A. Guragaon
    • B. Surat
    • C. Bangalore
    • D. Pune
    • Discuss
    • 5. http://www.CuriousTab.com - is an example of what?

    • Options
    • A. A URL
    • B. An access code
    • C. A directory
    • D. A server
    • Discuss
    • 6. First human heart transplant operation conducted by Dr. Christiaan Barnard on Louis Washkansky, was conducted in

    • Options
    • A. 1967
    • B. 1968
    • C. 1958
    • D. 1922
    • Discuss
    • 7. The working language(s) of the UNESCO is/are

    • Options
    • A. French only
    • B. English only
    • C. English and French
    • D. English, French and Russian
    • Discuss
    • 8. Ralph Samuelson was only 18 when he invented this sporting item in 1922. What was that?

    • Options
    • A. Golf tee
    • B. Motorboat
    • C. Water skis
    • D. Hang glider
    • Discuss
    • 9. Rahul Dravid also made Test debut along with Sourav Ganguly in the same match.He scored 95 runs. How many fours did he hit in that innings of 95 runs?

    • Options
    • A. 6
    • B. 10
    • C. 5
    • D. 7
    • Discuss
    • 10. The smallest glaciers are

    • Options
    • A. mountain or alpine glaciers
    • B. continental glaciers
    • C. piedmont glaciers
    • D. None of the above
    • Discuss


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