Which reference to inflation in India, which of the following stateme...

UPSC Prelims 2015 Economy

Which reference to inflation in India, which of the following statements is correct?

Explanation

Option A and B are incorrect: RBI plays a key/primary role in controlling inflation through its monetary policy. Option C is correct: Decreased money circulation can help control inflation, while increased circulation can contribute to it. Option D is incorrect: Increased money supply shall only increase inflation.

Linked concepts

Revision pages for syllabus ideas tested in this PYQ.

India's Macroeconomic Stability and Growth Drivers Fuel Price Mechanism in India Oil Price Volatility and its Economic Impact Inflation and its Drivers Exchange Rate Management and its Economic Implications