UPSC Exam  >  UPSC Questions  >  Which of the following can be undertaken to c... Start Learning for Free
Which of the following can be undertaken to control inflation?
  • a)
    Control on public expenditure
  • b)
    Control on hoarding and black marketing
  • c)
    Effective control on credit
  • d)
    All the above
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which of the following can be undertaken to control inflation?a)Contro...
Inflation can be controlled using monetary, fiscal and other measures.
View all questions of this test
Most Upvoted Answer
Which of the following can be undertaken to control inflation?a)Contro...
To control inflation, several measures can be undertaken. These measures include:

1. Control on public expenditure:
- The government can reduce its own expenditure to control inflation. By cutting down unnecessary expenses and ensuring efficient utilization of resources, the government can reduce the overall demand in the economy.
- This can be done by implementing strict budgetary discipline, reducing subsidies, and avoiding unnecessary borrowing. By doing so, the government can reduce the pressure on prices and help control inflation.

2. Control on hoarding and black marketing:
- Hoarding refers to the practice of accumulating essential goods in large quantities to create an artificial shortage in the market, leading to price hikes. Black marketing refers to the illegal sale of goods at prices higher than the market rates.
- To control inflation, the government can take measures to curb hoarding and black marketing. This can be done by implementing strict laws and regulations, conducting regular inspections, and imposing heavy penalties on those involved in such activities.
- Additionally, the government can also increase the supply of essential goods through imports or by encouraging domestic production to meet the demand and stabilize prices.

3. Effective control on credit:
- Credit plays a crucial role in influencing the purchasing power of individuals and businesses. When credit is easily available, it leads to increased spending and demand, which can contribute to inflation.
- To control inflation, the central bank can adopt a tight monetary policy by increasing interest rates and tightening the availability of credit. This would discourage excessive borrowing and spending, thereby reducing demand and controlling inflation.
- Additionally, the central bank can also regulate the amount of money in circulation by adjusting reserve requirements for banks and conducting open market operations.

By implementing all these measures, the government can effectively control inflation. It is important to adopt a comprehensive approach that addresses both the demand and supply factors contributing to inflation.
Explore Courses for UPSC exam

Similar UPSC Doubts

Top Courses for UPSC

Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer?
Question Description
Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following can be undertaken to control inflation?a)Control on public expenditureb)Control on hoarding and black marketingc)Effective control on creditd)All the aboveCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev