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Question
The major objective of monetary policy is ______.
Options
Employment generation
Maintaining foreign relations
Price stability
Greater tax collection
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Solution
The major objective of monetary policy is Price stability.
Explanation:
Monetary policy's primary aim is price stability. This means keeping prices steady over time by preventing deflation and keeping inflation in check.
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RELATED QUESTIONS
Observe the relationship of the first pair of words and complete the second pair:
Tax paid by person on whose it is imposed : Direct tax.
A tax is paid by some person and the final burden is born by some other person : ______.
The tax whose rate remains unchanged irrespective of the income of the taxpayer is called as ______.
Match the following:
| Column I | Column II | ||
| A. | Direct tax | (i) | Tax rate increases with tax base |
| B. | Indirect tax | (ii) | Tax rate remains constant |
| C. | Proportional tax | (iii) | Imposed on goods and services |
| D. | Progressive tax | (iv) | Impact and incidence lie on the same person |
Define direct tax
State the difference between income tax and expenditure tax.
Define a degressive tax.
Classify the following type of tax into direct and indirect taxes:
Income tax
Briefly explain why direct taxes foster civic consciousness among people.
How does the state fulfil the following socio-economic objective?
Promoting industrial growth.
Explain the term Impact of a tax.
