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The RBI has recently focused on its stance of 'withdrawal of accommodation'. Which of the following means 'withdrawal of accommodation'?

  • a)
    Reducing the money supply in the system which will rein in inflation further.

  • b)
    The central bank is prepared to expand the money supply to boost economic growth. 

  • c)
    A point where the economy is running just perfectly — neither high inflation nor faltering GDP growth.

  • d)
    None of the above

Correct answer is option 'A'. Can you explain this answer?
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The RBI has recently focused on its stance of withdrawal of accommodat...
B)Reducing the money supply in the system which will rein in inflation further.
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The RBI has recently focused on its stance of withdrawal of accommodat...
What is the ‘Withdrawal of accommodative stance’? 
  • The RBI has focused on its stance of ‘withdrawal of accommodation’ until all risks to inflation dissipate.
  • An accommodative stance means the central bank is prepared to expand the money supply to boost economic growth 
  • Withdrawal of accommodation will mean reducing the money supply in the system which will rein in inflation further.
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The RBI has recently focused on its stance of withdrawal of accommodation. Which of thefollowing means withdrawal of accommodation?a)Reducing the money supply in the system which will rein in inflation further.b)The central bank is prepared to expand the money supply to boost economic growth.c)A point where the economy is running just perfectly — neither high inflation nor falteringGDP growth.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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The RBI has recently focused on its stance of withdrawal of accommodation. Which of thefollowing means withdrawal of accommodation?a)Reducing the money supply in the system which will rein in inflation further.b)The central bank is prepared to expand the money supply to boost economic growth.c)A point where the economy is running just perfectly — neither high inflation nor falteringGDP growth.d)None of the aboveCorrect answer is option 'A'. 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 The RBI has recently focused on its stance of withdrawal of accommodation. Which of thefollowing means withdrawal of accommodation?a)Reducing the money supply in the system which will rein in inflation further.b)The central bank is prepared to expand the money supply to boost economic growth.c)A point where the economy is running just perfectly — neither high inflation nor falteringGDP growth.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The RBI has recently focused on its stance of withdrawal of accommodation. Which of thefollowing means withdrawal of accommodation?a)Reducing the money supply in the system which will rein in inflation further.b)The central bank is prepared to expand the money supply to boost economic growth.c)A point where the economy is running just perfectly — neither high inflation nor falteringGDP growth.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
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