Multiple choice

The most powerful tool used by RBI to control inflation is _______________.

  1. raising interest rates

  2. reducing the interest rates

  3. raising the money supply

  4. reducing the CRR

  5. None of the above

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Many individuals save money in banks. There will be an inflow which in turn decreasef price levels.