ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Achieving stable prices is related to many other good macroeconomic outcomes.
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Maintaining price stability is not one of the Federal Reserve’s most important goals.
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It is difficult for the Federal Reserve to achieve all of its conflicting objectives.
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The Federal Reserve needs assistance in figuring out which of its several priorities are most important.
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Detailed explanation-1: -Under the Reserve Bank of India, Act, 1934 (RBI Act, 1934) (as amended in 2016), RBI is entrusted with the responsibility of conducting monetary policy in India with the primary objective of maintaining price stability while keeping in mind the objective of growth.
Detailed explanation-2: -He worked with colleagues to set up emergency programs that backstopped various markets on the brink of collapse, from short-term business debt to securitized loans. And alongside the Treasury Department, he used the Fed’s powers to enable bailouts for bank and insurance company portfolios.
Detailed explanation-3: -Answer and Explanation: The correct answer is b: reducing income inequality. The Federal Reserve is described as the central bank of the United States. As the country’s monetary authority, the Federal Reserve has certain objectives, which is known as a dual mandate.
Detailed explanation-4: -The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.