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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 

  • Tags: Analyst, Bank Clerk, Bank PO

    Indian Economy problems


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    • 1. IPR stands for

    • Options
    • A. Intellectual Property Rights
    • B. International Property Rights
    • C. International Postgraduate Research
    • D. Indian Property Rights
    • Discuss
    • 2. Which of the following is NOT a social development scheme launched by the Government of India

    • Options
    • A. Indira Awas Yojana
    • B. Kutir Jyoti
    • C. LookEast Policy
    • D. Operation Black Board
    • Discuss
    • 3. The Tehri Hydro Power Complex is located in the State of

    • Options
    • A. Uttarakhand
    • B. Uttar Pradesh
    • C. Himachal Pradesh
    • D. Sikkim
    • Discuss
    • 4. Which one of the following is an abiotic and renewable resource

    • Options
    • A. Iron ore
    • B. Livestock
    • C. Water
    • D. Forests
    • Discuss
    • 5. Who amongst the following are the most literate in India as per 2001 Census

    • Options
    • A. Buddhists
    • B. Christianity
    • C. Jains
    • D. Sikkims
    • Discuss
    • 6. Open market operation is a part of

    • Options
    • A. Debit Policy
    • B. Deposit Policy
    • C. Credit Policy
    • D. None of above
    • Discuss
    • 7. Which action is an example of domestic policy?

    • Options
    • A. The Supreme Court strikes down a law that bans importing inefficient automobiles
    • B. A governor decides against running for a second term
    • C. The president negotiates a peace treaty between two warring nations
    • D. Congress passes a law that grants tax credits for installing solar panels
    • Discuss
    • 8. The largest proportion of federal revenues comes from

    • Options
    • A. borrowing
    • B. excise taxes
    • C. social insurance taxes
    • D. personal income taxes
    • Discuss
    • 9. Which property classification would include tools?
    • Discuss
    • 10. Which of the following represents a positive economic statement?

    • Options
    • A. The government should extend unemployment benefits.
    • B. The unemployment rate is too high.
    • C. Taxes should not be increased since that will lower spending.
    • D. The unemployment rate is 4.8 percent.
    • Discuss


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