UPSC 2023 › Indian Economy › Monetary Policy & Money Supply
2 questions · 2023 · answers as per the UPSC key
UPSC 2023 · Q22 · Indian Economy › Monetary Policy & Money Supply · Save
Consider the following statements : Statement–I : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement–II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.
Which one of the following is correct in respect of the above statements?
(a) Both Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–I
(b) Both Statement–I and Statement–II are correct and Statement–II is not the correct explanation for Statement–I
(c) Statement–I is correct but Statement–II is incorrect
(d) Statement–I is incorrect but Statement–II is correct
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Answer: (a) Both Statement–I and Statement–II are correct and Statement–II is the correct explanation for Statement–I
UPSC 2023 · Q24 · Indian Economy › Monetary Policy & Money Supply · Save
Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization'?
(a) Conducting 'Open Market Operations'
(b) Oversight of settlement and payment systems
(c) Debt and cash management for the Central and State Governments
(d) Regulating the functions of Non-banking Financial Institutions
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Answer: (a) Conducting 'Open Market Operations'