Economy
2022
Inflation and Deflation
RBI and Functions
Monetary Policy
In India, which one of the following is responsible for maintaining price stability by controlling inflation?
A.Department of Consumer Affairs
C.Financial Stability and Development Council
D.Reserve Bank of India
B.Expenditure Management Commission
Correct Answer: Option D
The Reserve Bank of India (RBI) is responsible for maintaining price stability by controlling inflation.
The RBI conducts monetary policy as per the Reserve Bank of India Act, 1934.
The primary objective is to maintain price stability while supporting economic growth.
The Monetary Policy Committee (MPC) determines the policy interest rate to achieve the inflation target.
The RBI uses various instruments like the repo rate, reverse repo rate, and open market operations to implement monetary policy.
Hence, option (d) is the correct answer.
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