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Which statement best explains Monetary policy?

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Question ID #26446 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium

Which statement best explains Monetary policy?

Correct Answer: C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives
Monetary policy: Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives

Question: Which statement best explains Monetary policy?

A. Part of external accounts recording capital transfers and financial flows

B. Market value of final goods and services produced within a country during a given period

C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives

D. Excess of total expenditure over total non-debt receipts of government

Correct Answer: C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectivesMonetary policy: Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives

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Which statement best explains Monetary policy? - MCQ Explanation

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Correct answer: C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives