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Question
The Monetary Policy Generally Targets to Ensure………….…… (Choose the Correct Alternative)
The Monetary Policy Generally Targets to Ensure………….…… (Choose the Correct Alternative)
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Solution
a) price stability in the economy.
b) employment generation in the country.
c) stable foreign relations.
d) greater tax collections for the government.
Answer: a) Price stability in the economy.
The objective of monetary policy is to ensure price stability and supply of money in the economy. At times of inflation there is reduced money supply, while in case of deflation there is abundant money supply in the economy.
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a) price stability in the economy.
b) employment generation in the country.
c) stable foreign relations.
d) greater tax collections for the government.
Answer: a) Price stability in the economy.
The objective of monetary policy is to ensure price stability and supply of money in the economy. At times of inflation there is reduced money supply, while in case of deflation there is abundant money supply in the economy.
Also read:
Learn about more questions and answers on business studies and various other commerce topics from our website.
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