With reference to the inflation in India, which of the following statements is correct ?

Controlling the inflation in India is the responsibility of the government of India only.

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The Reserve Bank of India has no role in controlling the inflation.

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Decreased money circulation helps in controlling the inflation.

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Increased money circulation helps in controlling the inflation.

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Solution

The correct option is C Decreased money circulation helps in controlling the inflation.
Inflation is a measure of price rise in an economy. To control the same, RBI decreases the money supply in the economy by raising interest rates or changing parameters like CRR, SLR etc.

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With reference to the inflation in India, which of the following statements is correct ?

The correct option is C Decreased money circulation helps in controlling the inflation.Inflation is a measure of price rise in an economy. To control the same, RBI decreases the money supply in the economy by raising interest rates or changing parameters like CRR, SLR etc.

The correct option is C Decreased money circulation helps in controlling the inflation.
Inflation is a measure of price rise in an economy. To control the same, RBI decreases the money supply in the economy by raising interest rates or changing parameters like CRR, SLR etc.