India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%. 2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change. 3. The food supply chain has structural constraints. Which of the statements given above are correct?
A rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"?
The lowering of Bank Rate by the Reserve Bank of India leads to
The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?
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