QUESTION

Easy

Economy

Prelims 2015

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

Select an option to attempt

Explanation

Option A and B are incorrect: RBI plays a key/primary role in controlling inflation through its monetary policy.

Option C is correct: Decreased money circulation can help control inflation, while increased circulation can contribute to it.

Option D is incorrect: Increased money supply shall only increase inflation.

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