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Question

The graph given below indicates the changes in key policy rates made by the Central Bank several times in a year:

Which one of the following can be the most likely reason for the Central bank for such an action?

The correct answer is

Anti-inflationary stance

Calculations:

From July '2' to June '16' it is almost one year. In this duration repo rate and reverse repo rate is going to increase continuously Wherever CRR is fixed. This only happens to control the inflation in the market. So whenever the central bank resists the policy rate, it is a way to suck out liquidity from the system. Normally this is due to the central bank expectation of rising inflation. Hence a continuously rising repo rate indicates an anti-inflationary stance.

∴ Option 4 is correct

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Important Questions from Bar Graph and Line Graph

  1. The table given below shows the cost price and selling price of 5 different articles.

    ArticleCost priceSelling price
    A500600
    B700750
    C600800
    D400700
    E300800

    What is the ratio of total cost price to total selling price of all articles?

  2. The table given below shows the cost price and value of profit of 6 articles.

    Articles Cost priceProfit 
    D700200
    E600150
    F400300
    G500400
    H300 250
    I800350

    Which of the following statement is NOT correct?

    I. The profit of D, E and F is 30.63 percent of the cost price of G, H and I.

    II. The ratio of total cost price to the total profit is 1 ∶ 2.

  3. A ________ is often drawn as a guide, so that a frequency polygon can be drawn over the top.

  4. Directions: 
    These data are based on the bar graph and line graph. 
    The following bar graph gives the total population of five cities(A, B, C, D and E) and number of females in the cities. 
    The following line graph gives the percentage of literates among females for each cities 
    Find the number of males in city B.

  5. Directions: 
    These data are based on the bar graph and line graph. 
    The following bar graph gives the the total population of five cities(A, B, C, D and E) and number of females in the cities. 
    The following line graph gives the percentage of literates among females for each cities. 
    Find the number of females who is illiterate from city C.

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