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Question

Which of the following is NOT a tool of monetary policy used by the RBI to control inflation?

  1. Cash Reserve Ratio (CRR)
  2. Statutory Liquidity Ratio (SLR)
  3. Open Market Operations (OMO)
  4. Tax Rate Adjustments

Answer:

Option D: Tax Rate Adjustments

Detailed Solution:

The correct answer is “Tax Rate Adjustments”.

Tax rate adjustments are a fiscal policy tool used by the government, not the RBI.