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.
Loading bookmark…
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?
Loading your progress…
Question 3 · Monetary Policy and Liquidity Management · Economy · UPSC Prelims 2022 (GS)