Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Our RBI governor Shaktikanta Das, sold some of the securities. Which of the following will be corrected with his action? 

Options:

Deflation

Deficient demand

Inflation

None of the above

Correct Answer:

Inflation

Explanation:

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.