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EconomyCSE2023Q22

Inflation

Revise 3 earlier PYQs together to build the knowledge CSE 2023 Q22 tests.

Curated to help you revise related PYQs together and understand how UPSC revisits concepts across years — educational guidance, not a prediction.
The question this prepares you for · CSE 2023 · Q22
Consider the following statements : Statement-I : In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II : Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means. Which one of the following is correct in respect of the above statements?
Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-IBoth Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-IStatement-I is correct but Statement-II is incorrectStatement-I is incorrect but Statement-II is correct

Why revise these together?

The 2022 RBI question (buying securities to fight inflation) and the 2014 interest-rate-effects question together build exactly the rate-vs-inflation transmission logic the target needs, and the MSF/NDTL question adds monetary-policy tooling. The CPI-IW publisher question is a superficial 'who publishes' fact that does not teach the monetary-policy mechanism, so it is pruned. The remaining three substantially prepare a student.

Revise these earlier PYQs together
Related concepts
InflationInterest RateMonetary Policy
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