Consider the following statements

1. Inflation in every form is bad for the economic growth of a country.
2. Right monetary policy by the Central Bank control all inflation.

Select the Incorrect statements using the codes given below.

a) 1 only
b) 2 only
c) Both 1 & 2
d) Neither 1 nor 2

Ans- c

Explanation– Inflation in every form is not bad. Zero inflation is discouraging for the economy. Thus statement 1 is wrong.

Monetary policy alone no matter how much it is right with respect to economic environment may not control all kind of inflation. Fiscal policy support and intervention of the govt are also needed. Thus statement 2 is also wrong.

Hence ans is c.