{"id":25690,"date":"2024-02-06T06:28:26","date_gmt":"2024-02-06T06:28:26","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=25690"},"modified":"2024-02-06T06:28:29","modified_gmt":"2024-02-06T06:28:29","slug":"upsc-prelims-2023-question-22","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-22\/","title":{"rendered":"UPSC Prelims 2023 &#8211; Question 22"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-prelims-test-series?utm_source=Blog&amp;utm_medium=Blog&amp;utm_campaign=Blog-%20PTS\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/02\/Prelims-Test-Series-eng-and-hindi-1280\u00d7330.svg\" alt=\"UPSC Prelims Mock Test - ECONOMY 2\" class=\"wp-image-24924\" width=\"779\" height=\"199\"\/><\/a><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a572e88c9eb5\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a572e88c9eb5\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-22\/#Q22_Consider_the_following_statements\" >Q22. Consider the following statements:\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-22\/#Correct_Answer_Option_a\" >Correct Answer: Option (a)&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q22_Consider_the_following_statements\"><\/span>Q22. Consider the following statements:\u00a0\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Statement \u2013 <\/strong>In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.\u00a0\u00a0<\/p>\n\n\n\n<p><strong>Statement-II:<\/strong> Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.&nbsp;<br>&nbsp;<br>Which one of the following is correct in respect of the above statements?&nbsp;<\/p>\n\n\n\n<p>(a) Both Statement-I and Statement-II are correct and Statement- II is the correct explanation for Statement- I&nbsp;<\/p>\n\n\n\n<p>(b) Both Statement-I and Statement-II are correct and Statement- II is not the correct explanation for Statement-I.&nbsp;&nbsp;<\/p>\n\n\n\n<p>(c) Statement I is correct but Statement II is incorrect\u00a0\u00a0<\/p>\n\n\n\n<p>(d) Statement I is incorrect but Statement II is correct\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Correct_Answer_Option_a\"><\/span>Correct Answer: Option (a)&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes to contain the post-pandemic inflation. For Example, since May 2022, the Monetary Policy Committee (RBI) has gone for rate hikes many times. Hence, statement 1 is correct.\u00a0<\/li><li>The central banks generally are mandated with the task of containing the rising prices of the commodities. Central banks use monetary policy to manage economic fluctuations and achieve price stability. Hence, statement 2 is correct and it provides the correct explanation for<strong> statement 1<\/strong>.\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/free-resources-for-upsc?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Resources\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png\" alt=\"\" class=\"wp-image-42398 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><\/figure>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel \u2013&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. 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Consider the following statements:  <\/p>\n<p> Statement \u2013 In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes.  <\/p>\n","protected":false},"author":17,"featured_media":25693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1644],"tags":[232,515,231],"class_list":["post-25690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-prelims","tag-upsc","tag-upsc-cse","tag-upsc-prelims"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.9 - aioseo.com -->\n\t<meta name=\"description\" content=\"Q22. 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Consider the following statements: Statement \u2013 In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.","og:url":"https:\/\/edukemy.com\/blog\/upsc-prelims-2023-question-22\/","og:image":"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/12\/edukemy-logo-horizontal.jpg","og:image:secure_url":"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/12\/edukemy-logo-horizontal.jpg","og:image:width":512,"og:image:height":157,"article:published_time":"2024-02-06T06:28:26+00:00","article:modified_time":"2024-02-06T06:28:29+00:00","article:publisher":"https:\/\/www.facebook.com\/edukemy\/","twitter:card":"summary_large_image","twitter:site":"@EdukemyOfficial","twitter:title":"UPSC Prelims 2023 - Question 22","twitter:description":"Q22. Consider the following statements: Statement \u2013 In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. Statement-II: Central Banks generally assume that they have the ability to counteract the rising consumer prices via monetary policy means.","twitter:creator":"@EdukemyOfficial","twitter:image":"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/12\/edukemy-logo-horizontal.jpg"},"aioseo_meta_data":{"post_id":"25690","title":"UPSC Prelims 2023 - Question 22","description":"Q22. Consider the following statements: Statement \u2013 In the post-pandemic recent past, many Central Banks worldwide had carried out interest rate hikes. 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