In India, which one of the following is responsible for maintaining price stability by controlling inflation?
A
Department of Consumer Affairs
B
Expenditure Management Commission
C
Financial Stability and Development Council
D
Reserve Bank of India
Correct Answer
Explanation
The Reserve Bank of India (RBI) is the primary body responsible for maintaining price stability, as mandated by the amended RBI Act, 1934, which tasks it with achieving a specific inflation target through monetary policy. While the Department of Consumer Affairs monitors the prices of essential commodities, it lacks the monetary instruments, such as the repo rate, required to control systemic inflation. The core concept being tested is **Inflation Targeting** and the statutory mandate of India’s central bank in macroeconomic management.
Monetary PolicyPrice Stability and RBI's MandateIndiaprice stabilitycontrolling inflationDepartment of Consumer AffairsExpenditure Management CommissionFinancial Stability and Development CouncilReserve Bank of India