The general target of the monetary policy is to ensure __________.
(A) Price stability in the economy
(B) greater tax collection for the government
(C) employment generation in the rural areas
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Only A.
The primary goal of monetary policy is to control inflation and maintain price stability, ensuring a stable economic environment. Central banks use tools like interest rates and money supply control to achieve this objective.
Explanation of Other Options:
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(B) Greater tax collection for the government is a fiscal policy goal, not a monetary policy.
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(C) Employment generation in rural areas is also primarily the focus of government welfare and employment programs, not monetary policy.