QUESTION

Easy

Economy

Prelims 2015

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

Select an option to attempt

Explanation

RBI plays a key/primary role in controlling inflation through its monetary policy. So, options (a) and (b) are incorrect.

Now, increased money supply shall only increase inflation. So option (d) is incorrect.

Decreased money circulation can help control inflation, while increased circulation can contribute to it. So, the answer should be the option (c).

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