Economics · Monetary Policy
The Reserve Bank of India's monetary policy instruments are generally less effective in controlling inflation when it is primarily caused by:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Rapid growth in public expenditure
- 2Expansion of credit by non-banking financial companies
- 3Severe supply-side shortages of essential goods✓
- 4Excessive deficit financing
Correct answer
Severe supply-side shortages of essential goods
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Monetary Policy MCQs →Want more practice questions on Monetary Policy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Monetary Policy