UPSC Civil Services Prelims 2023
Question 4 of 75Indian Economy
Consider the following statements: Statement-I: In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?
ABoth Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
BBoth Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
CStatement-I is correct but Statement-II is incorrect
DStatement-I is incorrect but Statement-II is correct
Correct Answer
The correct answer is hidden
Explanation
24 words hidden ... pressures. This reflected the standard monetary policy belief that tightening financial conditions can dampen demand ... 22 words hidden