Our RBI governor Shaktikanta Das, sold some of the securities held by RBI. Which of the following will be corrected with his action? |
Deflation Deficient demand Inflation Excessive imports |
Inflation |
the correct answer is option 3: 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. |