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is an effective method to control inflation in the economy.ans.Selective control of creditNone of the aboveBank rate policyCash reserve ratio Previous Marked for Review Next

Question

is an effective method to control inflation in the economy.ans.Selective control of creditNone of the aboveBank rate policyCash reserve ratio Previous Marked for Review Next

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Solution

The question seems to be asking for an effective method to control inflation in the economy. Here are the options provided:

  1. Selective control of credit
  2. None of the above
  3. Bank rate policy
  4. Cash reserve ratio

Let's go through each option:

  1. Selective control of credit: This is a method where the central bank controls the credit of commercial banks. It can be effective in controlling inflation, but it's not the only method.

  2. None of the above: This option suggests that none of the other options are correct.

  3. Bank rate policy: This is a method where the central bank changes the interest rate at which it lends money to other banks. This can influence the amount of money in the economy and thus control inflation.

  4. Cash reserve ratio: This is the amount of funds that a bank is required to hold in reserve against specified deposit liabilities. By changing this ratio, the central bank can control the amount of money in the economy and thus control inflation.

So, all three options (Selective control of credit, Bank rate policy, Cash reserve ratio) are effective methods to control inflation in the economy. Therefore, the answer would not be "None of the above". The best answer would depend on the specific context or criteria given in the question.

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RBI's role on controlling inflation

Compound interest is important in keeping up with the rate of inflation.TrueFalse

hich of the following describes the goal of Monetary Policy?a.Controlling taxesb.Controlling the national debtc.Controlling the money supplyd.Stopping inflation

Curb demand to drive inflation should beA.control of the money supplyB.reduce the wageC.abatement of taxD.Investment increases

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