Question

Objectives of monetary policy include:

A Equal Income distribution Correct Answer Incorrect Answer
B Control of inflation and deflation Correct Answer Incorrect Answer
C Balance of payment equilibrium Correct Answer Incorrect Answer
D All of these Correct Answer Incorrect Answer

Solution

Monetary policy aims to stabilize an economy by achieving key goals. It seeks to control inflation, ensuring the value of money remains steady. Additionally, it strives to foster full employment, encouraging sustainable economic growth. Maintaining stable exchange rates and safeguarding the financial system from risks are also pivotal. Overall, the objectives revolve around price stability, employment, growth, currency stability, and financial security.

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