GyanGram
ATTEMPT · INDIAN ECONOMY · PRELIMS 2015
Which reference to inflation in India, which of the following statements is correct?
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Your attempt
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Which reference to inflation in India, which of the following statements is correct?
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• Correct Answer: C
• Decreased money circulation (contractionary monetary policy) reduces aggregate demand, curbing inflationary pressure.
• RBI uses repo rate, CRR, and OMO to control money supply and price stability.
• A, B, D are wrong: inflation control is joint (RBI + Govt); increased money supply fuels inflation, not controls it.
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