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    Question

    Which kind of Policy is adopted by the Central Bank of

    any Country to control Inflation by tweaking interest rates?
    A Tax Policy Correct Answer Incorrect Answer
    B Monetary Policy Correct Answer Incorrect Answer
    C Fiscal Policy Correct Answer Incorrect Answer
    D Inflation Policy Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

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