What should RBI do to check inflation?
1. Raise Bank Rates
2. Reserve Ratio Requirements
3. Purchase securities in the Open Markets
Select the correct option from the codes given below:

Answer: [B] Only 1 & 2

Third statement is incorrect option. This is because Purchase of securities in the Open Markets would lead to more liquidity system and more liquidity means more money will chase the same goods.

This question is a part of GKToday's Integrated IAS General Studies Module