Read the following passage and answer the items that follow. Your answers to these items should be based on the passages only 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 passage states that "monetary or fiscal" policy "cannot independently work without active support of another."

Monetary policy is primarily conducted by the central bank (like RBI in India). Fiscal policy is primarily conducted by the Government.

Therefore, the statement that neither can work independently and requires active support directly implies that the central bank (monetary policy) cannot work independently of the Government (fiscal policy), and vice versa.

Analyzing the options: A) The central bank cannot work independently of the Government: This directly reflects the passage's core message of interdependence between monetary (central bank) and fiscal (government) policies. It is a direct corollary.

B) Government should regulate financial markets and institutions closely: While regulation might be part of macroeconomic policy, the passage's main point is the interdependence of the two wings of policy, not the specific actions like regulation. This is too specific and not the best reflection of the stated interdependence.

C) Market economy is not compatible with the socialist policies of the Government: The passage does not discuss market economy, socialist policies, or their compatibility. This is outside the scope of the passage.

D) Financial sector reforms are required for enhancing the economic welfare of the people: The passage mentions enhancing economic welfare as the objective, but it focuses on the interdependence of monetary and fiscal policy as the means to achieve it, not specifically financial sector reforms. Reforms might be a component, but it's not the direct corollary to the statement about policy interdependence.

Thus, A is the best reflection of the corollary to the passage.