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CMA Foundation · Fundamentals of Business Economics and Management · Economic and Business Environment

The Competition Commission of India (CCI) is established under the Competition Act, 2002. Which of the following is the main objective of this Act?

The main objective of the Competition Act, 2002 is to prevent practices that harm competition, such as cartels and abuse of dominance, and thereby protect consumer interests and freedom of trade. Foreign exchange falls under FEMA and money supply under the RBI, not this Act.

  1. ATo fix maximum retail prices of all goods
  2. BTo prevent practices that harm competition and protect consumer interestsCorrect
  3. CTo regulate foreign exchange transactions
  4. DTo control the money supply in the economy

Explanation

The Competition Act aims to prevent anti-competitive agreements and abuse of dominant position, promote and sustain competition and protect consumers. Foreign exchange is governed by FEMA and money supply by the RBI, so those options are wrong.

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