NextQ28

Read the following statements carefully : Statement 1 : Money is a commodity which is generally accepted as a medium of exchange. Statement 2 : Money solved the problem of double coincidence of wants. In the light of the given statements, choose the correct alternative from the following :

Question 27

Read the following text carefully from ‘The Economic Times’ dated 8th June, 2023 : “The Reserve Bank of India’s (RBI’s) rate setting panel unanimously decided to keep the benchmark lending rate unchanged at 6.5%. The committee voted to remain focused on the withdrawal of accommodating monetary policy.” On the basis of given text and common understanding, answer the following questions : (a) Identify and discuss the economic issue indicated in the above text. (b) Discuss the likely consequence on money supply if the rate setting panel would have decreased the said rate.

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