Question

The Impossible Trinity (or Trilemma) in international finance states that a country cannot simultaneously have:

A Fixed exchange rates, free capital flows, and fiscal autonomy.
B Fixed exchange rates, free capital flows, and an independent monetary policy.
C Floating exchange rates, capital controls, and trade surplus.
D Full employment, price stability, and current account balance.
E Independent monetary policy, fiscal policy, and exchange rate policy.
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)