To control inflation, the Reserve Bank of India (RBI) can implement several key measures: Increase Interest Rates: Repo Rate: Raising the repo rate makes borrowing more expensive for commercial banks, leading to higher interest rates for consumers and businesses. This reduces spending and investmentRead more
To control inflation, the Reserve Bank of India (RBI) can implement several key measures:
- Increase Interest Rates:
- Repo Rate: Raising the repo rate makes borrowing more expensive for commercial banks, leading to higher interest rates for consumers and businesses. This reduces spending and investment, thereby cooling demand and controlling inflation.
- Reverse Repo Rate: Increasing the reverse repo rate encourages banks to deposit more funds with the RBI, reducing the money supply.
- Open Market Operations (OMO):
- The RBI can sell government securities in the open market to reduce the money supply. When buyers purchase these securities, they pay the RBI, effectively reducing the amount of money circulating in the economy.
- Cash Reserve Ratio (CRR):
- By raising the CRR, the proportion of deposits that banks must hold as reserves, the RBI reduces the funds available for banks to lend and invest, thereby decreasing the money supply.
- Statutory Liquidity Ratio (SLR):
- Increasing the SLR, the minimum percentage of deposits that banks must invest in safe and liquid assets, reduces the amount of money available for lending, helping to control inflation.
Changing climate and weather conditions refer to long-term shifts in temperature and weather patterns. India experiences a subtropical climate with hot summers and mild winters, influenced by its geographical diversity and the Himalayan mountains. Extreme heat waves in India are worsened by urbanizaRead more
Changing climate and weather conditions refer to long-term shifts in temperature and weather patterns. India experiences a subtropical climate with hot summers and mild winters, influenced by its geographical diversity and the Himalayan mountains.
Extreme heat waves in India are worsened by urbanization, which creates heat islands in cities, and deforestation, which reduces cooling from trees. Natural climate cycles like El Niño can also intensify heat waves by altering ocean temperatures and weather patterns.
India’s response includes urban planning for heat resilience, promoting green spaces in cities, and adopting renewable energy to mitigate climate impacts. These steps aim to protect vulnerable populations from the severe effects of prolonged heat waves, ensuring a more sustainable future amidst changing climatic conditions.
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