Practice question
Question
In the present COVID 19 times, many economists have raised their concerns that Indian economy may have to face a deflationary situation, due to reduced economic activities in the country. Suppose you are a member of the high-powered committee constituted by the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ...............of the money supply be ensured, by the Reserve Bank of India (RBI).
Explanation
Release money banking correct; RBI controls money supply, fiat money legal tender.
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