Question
EconomyMoney, RBI and InflationMonetary Policy and Liquidity ManagementMedium (editorial estimate)
Question details
Type:
Statement based
Skill:
Fact recall
Tags:
RBI monetary and currency intervention · Monetary Policy and Liquidity Management
Related topics:
Exchange Rates and Currency Management

Classification and difficulty are editorial labels. Explanations are awaiting review.

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With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct?

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Question 3 · Monetary Policy and Liquidity Management · Economy · UPSC Prelims 2022 (GS)

Topics and years

2022 · GS · Question 3