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The lesson cites the Preamble to the RBI Act, 1934 as the source of the primary objective of monetary policy in India. What does the lesson state as the primary objective?
Answer & Solution
Correct answer: D.
1. The Preamble to the RBI Act sets the monetary policy mandate.
2. The primary objective is to maintain price stability.
3. Price stability is to be pursued while keeping in mind the objective of growth.
4. Reserves maximisation, single-mindedly suppressing inflation, and a fixed rupee peg are not the statutory objective.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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