Q113. With reference to inflation in India, which of the following statements is correct?

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

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/are corre

Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does n

When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?

Consider the following statements regarding Reserve Bank of India: 1. It is a banker to the Central Government 2. It formulates and administers monetary policy

In India, inflation is measured by the:

A rise in the general level of prices may be caused by: 1. An increase in the money supply 2. A decrease in the aggregate level of output 3. An increase in the

Which one of the following statements is an appropriate description of deflation?

With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following? 1. Expansionary policies 2. Fiscal stimulus 3. I

Which one of the following activities of the Reserve Bank of India is considered to be part of ‘sterilization’?

With reference to Indian economy, consider the following: 1. Bank rate 2. Open market operations 3. Public debt 4. Public Revenue Which of the above is/are comp

Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee?

In the context of the Indian economy, which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to c

In the context of Indian economy, ‘Open Market Operations’ refers to:

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2.

Which of the following statements is/are correct regarding the ‘Monetary Policy Committee (MPC)? 1. It decides the RBI’s benchmark interest rates. 2. It is a 12

Which one of the following statements correctly describes the meaning of legal tender money? (a) The money which is tendered in courts of law to defray the fee

If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increa

Which one of the following is likely to be the most inflationary in its effects?

Which of the following steps is most likely to be taken at the time of an economic recession?

Which of the following brings out the ‘Consumer Price Index Number for Industrial Workers’?

Which one of the following is likely to be the most inflationary in its effect?

India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1. Due to a gradual switchover to the cultiva

In the context of Indian economy, consider the following pairs: | Term | Most Appropriate Description | | :--- | :--- | | 1. Melt Down | Fall in Stoc

With reference to India, consider the following statements: 1. The Wholesale Price Index (WPI) in India is available on a monthly basis only. 2. As c

Match List I with List II and select the correct answer using the codes given below the lists: | List-I | List-II | | :--- | :--- | | A. Boom | 1. Bu