168.In India, which one of the following is responsible for maintaining price stability by controlling inflation ?

Department of Consumer Affairs
Expenditure Management Commission
Financial, Stability and Development Counell
Reserve Bank of India,

The correct answer is (d) Reserve Bank of India.

The Reserve Bank of India (RBI) is the central bank of India. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI is responsible for formulating and implementing monetary policy, regulating the financial system, and issuing currency in India.

The RBI’s primary objective is to maintain price stability. It does this by using monetary policy tools such as open market operations, repo rates, and reverse repo rates. The RBI also regulates the financial system by setting rules and regulations for banks and other financial institutions.

The RBI is also responsible for issuing currency in India. It does this by printing notes and coins. The RBI also manages the country’s foreign exchange reserves.

The RBI is a statutory body and is governed by a board of directors. The board is appointed by the government of India. The RBI’s headquarters are located in Mumbai.

The RBI is an independent body and is not subject to the control of the government. However, the government does have some powers over the RBI. For example, the government can appoint the RBI’s governor and deputy governors. The government can also issue directions to the RBI, but these directions must be in the public interest.

The RBI is a powerful institution and plays a vital role in the Indian economy. It is responsible for maintaining price stability, regulating the financial system, and issuing currency. The RBI is also responsible for managing the country’s foreign exchange reserves.

The other options are incorrect because they are not responsible for maintaining price stability by controlling inflation.

(a) The Department of Consumer Affairs is a ministry of the Government of India. It is responsible for protecting the interests of consumers and promoting fair trade practices.

(b) The Expenditure Management Commission is an independent body that was set up by the government of India in 2014. It is responsible for making recommendations on the management of government expenditure.

(c) The Financial Stability and Development Council is an inter-ministerial body that was set up by the government of India in 2010. It is responsible for promoting financial stability in India.

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