Statements : The prices of vetegables and other food articles have increased in the recent months raising hope among policy planners that the RBI's (Reserve Bank of India) tight grip on supply of liquid money in the market for controlling inflation may be eased.Which of the following may be a possible action of the above situation?

Statements : The prices of vetegables and other food articles have inc

1.	Statements : The prices of vetegables and other food articles have increased in the recent months raising hope among policy planners that the RBI's (Reserve Bank of India) tight grip on supply of liquid money in the market for controlling inflation may be eased.Which of the following may be a possible action of the above situation?
Answer» The Reserve BANK of India may not REDUCE its key interest rates in near future The Government may step in and make certain concessions to the common people on various issues The Reserve Bank of India may consider lowering certain rates to bring in more LIQUIDITY in the market The RBI may collect more data from the market and wait for another four months to ensure they take the correct step Solution :OPTION (C ) may be only possible action because other options are not feasible for RBI and reduction in certain rates would control inflation in market.

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