Home UPPSC Prelims 2025 Mock Test Series MCQs

Question

Which of the following is NOT a tool used by the Reserve Bank of India (RBI) to control inflation?

  1. Cash Reserve Ratio (CRR)
  2. Statutory Liquidity Ratio (SLR)
  3. Repo Rate
  4. Government Spending

Answer:

Option D: Government Spending

Detailed Solution:

The correct answer is “Government Spending”.

Government Spending is a fiscal policy tool, controlled by the government, while CRR, SLR, and Repo Rate are monetary policy tools used by RBI.