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Consider the following statements.
- In India, the Ministry of Statistics and Programme Implementation measures inflation.
- RBI through its Monetary Policy Committee (MPC) controls Money supply in the market.
- Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.
Which of the above statements is/are correct?
- a)1 only
- b)1, 2
- c)1, 3
- d)2, 3
Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements. In India, the Ministry of Statistic...
Inflation:
- Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.
- Inflation measures the average price change in a basket of commodities and services over time.
- The opposite and rare fall in the price index of this basket of items is called ‘deflation’.
- Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency.
- RBI through its Monetary Policy Committee (MPC) Controls Money supply in the market.
- Inflation is measured by a central government authority, which is in charge of adopting measures to ensure the smooth running of the economy. In India, the Ministry of Statistics and Programme Implementation measures inflation.
- Inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure wholesale and retail-level price changes, respectively.
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Consider the following statements. In India, the Ministry of Statistic...
The first statement is incorrect. In India, the Ministry of Statistics and Programme Implementation is responsible for collecting and analyzing data related to various socio-economic indicators, including inflation. However, the central bank of India, the Reserve Bank of India (RBI), also plays a significant role in monitoring and managing inflation.
The second statement is partially correct. The RBI, through its Monetary Policy Committee (MPC), formulates and implements monetary policies to control inflation and achieve price stability. One of the tools used to control inflation is adjusting the money supply in the market. However, the MPC's role is not limited to controlling money supply; it also considers various other factors such as economic growth, employment, and financial stability while formulating monetary policies.
The third statement is incorrect. Inflation refers to the general increase in the prices of goods and services in an economy over time. It is not indicative of the increase in the purchasing power of a unit of a country. In fact, inflation erodes the purchasing power of a currency as it reduces the amount of goods and services that can be purchased with a given amount of money.
The second statement is partially correct. The RBI, through its Monetary Policy Committee (MPC), formulates and implements monetary policies to control inflation and achieve price stability. One of the tools used to control inflation is adjusting the money supply in the market. However, the MPC's role is not limited to controlling money supply; it also considers various other factors such as economic growth, employment, and financial stability while formulating monetary policies.
The third statement is incorrect. Inflation refers to the general increase in the prices of goods and services in an economy over time. It is not indicative of the increase in the purchasing power of a unit of a country. In fact, inflation erodes the purchasing power of a currency as it reduces the amount of goods and services that can be purchased with a given amount of money.
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Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. 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 Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. 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 Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer?.
Solutions for Consider the following statements. In India, the Ministry of Statistics and Programme Implementation measures inflation. RBI through its Monetary Policy Committee (MPC) controls Money supply in the market. Inflation is indicative of the increase in the purchasing power of a unit of a country’s currency.Which of the above statements is/are correct?a)1 onlyb)1, 2c)1, 3d)2, 3Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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