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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
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | Taxes imposed on income and wealth | A. | Regressive |
| (ii) | Taxes imposed on goods and services | B. | Progressive |
| (iii) | A tax system where the rate of tax decreases with increase income | C. | Direct taxes |
| (iv) | A tax system where the rate of tax increases as income increase | D. | Indirect taxes |
Monetary policy means regulation of money supply by the monetary authority.
Which of the statement is true for income tax?
What is meant by shifting of tax burden?
Classify the following type of tax into direct and indirect taxes:
Income tax
What is meant by regressive taxation?
What are progressive taxes.
How does the state fulfil the following socio-economic objective?
Environmental protection.
Differentiate between progressive and regressive taxes giving an example for each.
Citing reasons state the superiority of Fostering civic consciousness by direct tax over the same by indirect tax.
