WBCS.LIVE practice question

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

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Controlling inflation in India is the responsibility of the GOI only
  2. The RBI has no role in controlling inflation
  3. Decreased money circulation helps in controlling inflation
  4. Increased money circulation helps in controlling inflation

Correct answer and explanation

Correct answer: Decreased money circulation helps in controlling inflation