Question : The main objective of the monetary policy is:
Option 1: Price stability
Option 2: Economic growth
Option 3: Employment generation
Option 4: Poverty alleviation
Correct Answer: Price stability
Solution : The correct answer is (a). Price stability
The main objective of monetary policy is to maintain price stability within an economy. Price stability refers to a low and stable rate of inflation over time. By controlling the money supply and interest rates, central banks aim to keep inflation in check and ensure stable prices. While other factors such as economic growth, employment generation, and poverty alleviation are important, they are typically addressed through other policy measures such as fiscal policy and structural reforms.



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