Practicing Success
Our RBI governor Shaktikanta Das, sold some of the securities. Which of the following will be corrected with his action? |
Deflation Deficient demand Inflation None of the above |
Inflation |
Inflation is a situation when there is excess money supply in the economy. Sale of securities means that securities are issued and in return bank gets money which indicates that money is being extracted from the economy. This is used for dealing with inflation in the economy. |