Given below are two statements:
Statement I: Monetary policy on its own cannot influence economic growth but can only support it by creating congenial factors.
Statement II: Monetary policy rates change get transmitted across the markets and eventually get reflected in lending rates, mortgage rates and yields. Hence, monetary policy can address the current inflation.
In the light of the above statements, choose the most appropriate answer from the options given below:
Codes

Correct option is C

Statement I: Monetary policy on its own cannot influence economic growth but can only support it by creating congenial factors. This statement is true because monetary policy alone cannot drive economic growth. It can, however, create an environment conducive to growth by maintaining price stability, managing inflation, and ensuring adequate liquidity in the economy.
Statement II: Monetary policy rates change get transmitted across the markets and eventually get reflected in lending rates, mortgage rates, and yields. Hence, monetary policy can address the current inflation. If you found this statement to be false, it means that you believe that monetary policy rates do not effectively transmit across markets and influence lending rates, mortgage rates, and yields. This could be due to various factors such as limited transmission channels, market inefficiencies, or other factors that hinder the direct impact of monetary policy on inflation.
Therefore, Statement I is true but Statement II is false.