Q5 of 34 Page 1

The monetary policy generally targets to ensure………….…… 1. (Choose the correct alternative)

The monetary policy generally targets to ensure price stability in the economy. The monetary policy of a nation focuses to control the situations of inflation and deflation. This policy focuses on overall supply of money in the economy. Supply of money is reduced during inflation and increased during deflation.

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3

Average Propensity to Consume can never be ………………………... 1. (choose the correct alternative)

 4

Name any. two quantitative tools to control credit creation in an economy

Or


What are demand deposits? 1


 6

In an economy, break-even point and equilibrium point may lie at the same level of income, if ex-ante investments are …………………(Fill up the blank with correct answer)

 7

State whether the given statement is true or false:

‘Managed Floating Exchange Rate is decided by market forces but remains within a specific range as decided by central bank’.