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Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? for Class 1 2024 is part of Class 1 preparation. The Question and answers have been prepared according to the Class 1 exam syllabus. Information about Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 1 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer?.

Solutions for Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 1. Download more important topics, notes, lectures and mock test series for Class 1 Exam by signing up for free.

Here you can find the meaning of Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: The passage given below is followed by a set of questions. Choose the best answer to each question.A sharp and unexpected increase in inflation based on the wholesale price index underlines the need for the RBI to put in place a framework for delivering low and stable inflation. There has been a discernible shift in policy in the two months since Raghuram Rajan joined as governor - the RBI appears to be moving towards becoming a modern central bank that has price stability as its main objective. Important steps have been taken but these need to be institutionalised so that Rajan’s legacy is assessed not merely in terms of how well the RBI does under him, but by whether or not he leaves behind a reformed institution.In the immediate context, Rajan needs to use each and every opportunity to emphasise price stability or inflation control as the single most important objective of monetary policy. This is required because of the enormous confusion in the past, with the RBI raising interest rates in periods of high inflation, but in between rate hikes, failing to communicate its policy to the public. A new and clearer approach is called for. Rajan has made a good beginning but he will have to be careful not to fall into the trap many an emerging economy’s central banker has fallen into of worrying about the short-term movements of the rupee.In the longer run, the institutional framework for an inflation-targeting central bank must be clarified. Whether the RBI should focus only on inflation or on another secondary objective as well - for instance, employment, like the US Fed does - must be determined. A measurable objective will allow an accountable framework to be put in place. The RBI will then need to be given independence, accountability and a clear mandate. There is no doubt that old timers in policymaking, who have managed well within the current mandate, will be reluctant to see the RBI change. Governors and deputy governors, retired and serving, have often stood for the status quo and resisted loss of turf. But opposing institutional change is the nature of all bureaucracies and India cannot be held hostage to that approach. In the next five years, if Rajan transforms the way the RBI functions, and leaves behind a modern and well-functioning central bank, it would help prepare India for the fluctuations in growth and the business cycle and for the pressures of globalisation in the coming decades.Q. Find the incorrect statement on the basis of the given passagea)To fulfill secondary objectives such as employment, an accountable framework needs to be put in placeb)To bring about a change in the framework, the RBI needs to be given independence, accountability and a clear mandatec)The old policy makers will be enthused to see the RBI changed)It is innate nature of all bureaucracies to oppose institutional changee)None of theseCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Class 1 tests.