Question
Which of the following is a measure taken by RBI to control inflation in our country?
Answer: Option C
:
C
In the situation of inflation, the RBI aims to reduce the money supply. So, the RBI can increase CRR and/or SLR. This way, banks will have a lesser lending capacity as they have to use more the deposits as reserves. Thus the money supply will fall.
Was this answer helpful ?
:
C
In the situation of inflation, the RBI aims to reduce the money supply. So, the RBI can increase CRR and/or SLR. This way, banks will have a lesser lending capacity as they have to use more the deposits as reserves. Thus the money supply will fall.
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution