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UPSC Civil Services 2021 Prelims General Studies Paper II

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Question : 54

Total: 80

In India, the objective of macroeconomic policy is to enhance the economic welfare of the people, and any one wing of such macro policy, monetary or fiscal, cannot independently work without active support of another.
Which one of the following statements best reflects the corollary to the passage given above?

The central bank cannot work independently of the Government.
Government should regulate financial markets and institutions closely.
Market economy is not compatible with the socialist policies of the Government.
Financial sector reforms are required for enhancing the economic welfare of the people.

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