Economy

2 questions

• 2022 · Question 3 · Monetary Policy

  With reference to the Indian economy, consider the following statements : 1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct ?

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  (a)1 and 2 only(b)2 and 3 only(c)1 and 3 only(d)1, 2 and 3

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  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)

• 2022 · Question 68 · Monetary Policy

  In India, which one of the following is responsible for maintaining price stability by controlling inflation ?

  Choose your answer

  (a)Department of Consumer Affairs(b)Expenditure Management Commission(c)Financial Stability and Development Council(d)Reserve Bank of India

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  Source: UPSC, Civil Services (Preliminary), General Studies Paper I (opens in a new tab)