Which of the following measures does the RBI take to regulate money in the economy?

Controls the rate of interest on loans and savings

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Asks citizens for money

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Imposes high taxes

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Asks loans from citizens

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Solution

The correct option is C Imposes high taxes
The RBI tries to curb additional money supply in the economy by regulating it and controls the people’s capacity to spend more. The Reserve Bank of India controls the rate of interest on loans and savings. It imposes high taxes so that people purchase less.

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