Which of the following is the primary objective of monetary policy in a country?

CA Foundation · Business Economics · MTP · January 2025
Which of the following is the primary objective of monetary policy in a country?
(A) A. To reduce government expenditure
(B) B. To regulate the money supply to achieve macroeconomic goals like controlling inflation
(C) C. To provide interest-free loans to the private sector
(D) D. To balance the national budget

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. To regulate the money supply to achieve macroeconomic goals like controlling inflation

Topics: Money Market

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