UPSC CSE Prelims
Question 86
In India, which one of the following is responsible for maintaining price stability by controlling inflation ?
View correct answer and explanation
Correct answer: D
Correct Option: D (Reserve Bank of India)
Explanation: Under India’s monetary policy framework the Reserve Bank of India, acting through the Monetary Policy Committee and other tools, targets price stability while considering growth.
Option-wise Analysis:
A. Incorrect-The Department of Consumer Affairs monitors prices/consumer matters but is not the monetary-policy authority.
B. Incorrect-The Expenditure Management Commission concerned government spending efficiency, not direct inflation targeting.
C. Incorrect-The Financial Stability and Development Council coordinates financial stability issues, not primary price-stability policy.
D. Correct-RBI is entrusted with maintaining price stability under its monetary-policy mandate.