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.

Correct Option: C

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.

A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term “progressive” refers to the way the tax rate progresses from low to high, with the result that a taxpayer’s average tax rate is less than the person’s marginal tax rate.

Correct Option: B

A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term “progressive” refers to the way the tax rate progresses from low to high, with the result that a taxpayer’s average tax rate is less than the person’s marginal tax rate.

The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Some of the common money market instruments are: commercial paper, municipal notes, interest rate swaps, etc.

Correct Option: A

The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Some of the common money market instruments are: commercial paper, municipal notes, interest rate swaps, etc.

Micro Units Development and Refinance Agency Bank (or MUDRA Bank)is a new institution setup by the Government of India to provide the funding to the non-corporate small business sector. It will provide its services to small entrepreneurs outside the service area of regular banks, by using last mile agents.

Correct Option: A

Micro Units Development and Refinance Agency Bank (or MUDRA Bank)is a new institution setup by the Government of India to provide the funding to the non-corporate small business sector. It will provide its services to small entrepreneurs outside the service area of regular banks, by using last mile agents.

Devaluation means official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency.Devaluation causes a country’s exports to become less expensive, making them more competitive in the global market. This, in turn, means that imports are more expensive, making domestic consumers less likely to purchase them.

Correct Option: A

Devaluation means official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency.Devaluation causes a country’s exports to become less expensive, making them more competitive in the global market. This, in turn, means that imports are more expensive, making domestic consumers less likely to purchase them.