A) Controlling the inflation in India is the responsibility of the government of India only
B) The Reserve Bank of India has no role in controlling the inflation
C) Decreased money circulation helps in controlling the inflation
D) Increased money circulation helps in controlling the inflation
Correct Answer: C
Solution :
Exp. [c] In Economics, inflation refers to the rise in general price level of goods and services in a country over a period of time. The term 'inflation' originally referred to increases in the amount of money in circulation and some economists still use the word in this way. So, decreased money circulation helps in controlling the inflation. However, most economists today use the term 'inflation' to refer to a rise in the price level. Controlling the inflation in India is major responsibility of Indian Government and the Reserve Bank of India (RBI).
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