What is the primary objective of monetary policy in most countries, including India?

CA Foundation · Business Economics · PYQS · September 2025
What is the primary objective of monetary policy in most countries, including India?
(A) A. To ensure a high level of government spending.
(B) B. To maintain a balance between price stability and economic growth.
(C) C. To promote export-led growth.
(D) D. To control exchange rates at all costs.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. To maintain a balance between price stability and economic growth.

Topics: Money Market

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