GyanGramQuestion
Which reference to inflation in India, which of the following statements is correct?
PRELIMS 2015 · INDIAN ECONOMY
Which reference to inflation in India, which of the following statements is correct?
Attempt this previous-year question. The correct option stays hidden until you choose.
Pick an option to check yourself.
• 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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