Correct Answer: Subsidies and Price Controls
Subject: economics
Explanation: • <b>Key Fact</b> Subsidies and Price Controls are Fiscal Policy measures by the Government, not Monetary Policy by the RBI. • <b>Supporting Detail</b> RBI uses Repo rate, CRR, SLR, and OMOs to manage money supply. • <b>Related Concept</b> Hiking the Repo rate discourages loans, reducing demand-pull inflation. • <b>Why wrong options are wrong</b> Options A, B, and D are direct RBI monetary tools. • <b>Exam Trick</b> RBI = Monetary (Rates, Ratios). Government = Fiscal (Taxes, Subsidies, PDS). • <b>Additional Info</b> E.g., RBI increased Repo Rate to 6.5% in 2023 to combat inflation.
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