Q.

The major objective of monetary policy is to -

A. increase government's tax revenue
B. revamp the Public Distribution System
C. Promote economic growth with price stability
D. weed out corruption in the economy
Answer» C. Promote economic growth with price stability
Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general economic growth. Further goals of a monetary policy are usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.
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