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Question

Consider the following measures :
1. Changing the bank rate
2. Open-market operations
3. Increasing the cash-reserve ratio
Which of the measures given above are taken by Reserve Bank of India ?

A
1 and 2
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B
2 and 3
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C
1 and 3
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D
1 , 2 and 3
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Solution

The correct option is D 1 , 2 and 3
All the given three quantitative instruments, ie,changing the bank rate, open market operations and increasing cash reserve ratio can be operated by Reserve Bank of India to control inflation.

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