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

Answer: [B] Only 1 & 2

Purchase of securities in open market will increase the money supply in the hands of people and hence will increase inflation.

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