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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


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

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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