Consider the following statements 1 Formation of Price stabilization fund in the budget 2017 18 to c...........

Economic Affairs Inflation

Consider the following statements:

1.Formation of Price stabilization fund in the budget 2017-18 to check volatility of prices of essential commodities.

2.Imposition on stock limits in respect of pulses, onion, edible oils and edible oil seeds under the Essential Commodities Act.

3.Announced higher Minimum Support Prices so as to incentivize production and thereby enhance availability of food items which may help moderate prices.

4.Revision of the repo rate and reverse repo rate.

Which of the above measures are taken by the government to control inflation?

3 only

1, 3 and 4 only

1, 2 and 3 only

1, 2, 3 and 4

छोटे Courses बड़े Results

Master Inflation

Prepare through Micro-courses

Try Now

Explanation:

1, 2 and 3 only

Formation of Price Stabilization Fund in the budget 2017-18 to check the volatility of prices of essential commodities: This measure is aimed at stabilizing and controlling the prices of essential commodities to prevent excessive volatility.

Imposition of stock limits in respect of pulses, onion, edible oils, and edible oil seeds under the Essential Commodities Act: This measure allows the government to regulate and control the stockholding of essential commodities to prevent hoarding and ensure availability in the market.

Announcement of higher Minimum Support Prices (MSP) to incentivize production and enhance the availability of food items, which may help moderate prices: Increasing MSP is a measure to support farmers by ensuring remunerative prices for their produce, and it can also contribute to stabilizing prices in the market.

Revision of the repo rate and reverse repo rate: The repo rate is a tool used by the central bank (Reserve Bank of India) to control inflation. By adjusting the repo rate, the central bank influences the cost of borrowing and spending in the economy, impacting inflation.

Therefore, the correct answer is Option 3: 1, 2, and 3 only.