Prelims • Paper 1 (GS) • 2022 • Q.3
Economics (Monetary Policy & Forex)
With reference to the Indian economy, consider the following statements :
1
If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2
If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3
If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
Syllabus Connection
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. (Prelims)
NCERT Connection
Ch.3: Money and Banking
Economics • Class 12 • Class 12 Macroeconomics
Ch.6: Open Economy Macroeconomics
Economics • Class 12 • Class 12 Macroeconomics