The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as: A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as: A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy
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B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy.
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Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.

Description : Fiscal policy is called as ______ policy. A. monetary. B. budgetary. C. industrial. D. economic.

Last Answer : B. budgetary.

The policy that deals with the tax and expenditure policies of the Government is called – (1) Monetary Policy (2) Fiscal Policy (3) Credit Policy (4) Budgetary Policy

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Last Answer : (3) 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 ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.

The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy

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Last Answer : Promote economic growth with price stability

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Variation in Cash Reserve Ratio and Open Market Operations are instruments of (1) Budgetary policy (2) Trade policy (3) Fiscal policy (4) Monetary policy

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Last Answer : Monetary policy

The 'Interest Rate Policy' is a component of - (1) Fiscal Policy (2) Monetary Policy (3) Trade Policy (4) Direct Control

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Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy

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Last Answer : Controlling government spending

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What does it mean when a central bank increases interest rates?

Description : What does it mean when a central bank increases interest rates?

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Last Answer : (2) the forces of demand and supply in the foreign exchange market Explanation: A floating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to ... by the foreign-exchange market through supply and demand for that particular currency relative to other currencies.

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Description : Under flexible exchange rate system, the exchange rate is determined by (1) the Central Bank of the country (2) the forces of demand and supply in the foreign exchange market (3) the price of gold (4) the purchasing power of currencies 

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