Which one of the following is the basic objective of monetary policy?

To control deficit of the budget

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To control deficit in the balance of payment

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To control cost and availability of money

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To control public expenditure

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Solution

The correct option is C To control cost and availability of money
Monetary Policy is concerned with government's attempts to provide a more stable economy by regulating the rate of growth of the money supply. Thus, the main objective of monetary policy is to control cost and availability of money.

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Which one of the following is the basic objective of monetary policy?

The correct option is C To control cost and availability of moneyMonetary Policy is concerned with government's attempts to provide a more stable economy by regulating the rate of growth of the money supply. Thus, the main objective of monetary policy is to control cost and availability of money.

The correct option is C To control cost and availability of money
Monetary Policy is concerned with government's attempts to provide a more stable economy by regulating the rate of growth of the money supply. Thus, the main objective of monetary policy is to control cost and availability of money.