Question 45

Although in the limited sense of freedom regarding appointments and internal working, the independence of the Central Bank is unequivocally ensured, the same cannot be said of its right to pursue monetary policy without co-ordination with the central government. The role of the Central Bank has turned out to be subordinate and advisory in nature.
Which of the following best supports the conclusion drawn in the passage?


Among all the options, the only statement where there is a clash between the ideology of the Central Bank and the ideology of the Government is option b), the Government resorting to monetisation despite the reservations of the Central Bank. Hence, option b) is the answer.

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