📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      When RBI wants to control inflation then what action

      they will take?
      A RBI will maintain the current repo rate. Correct Answer Incorrect Answer
      B RBI will increase Repo Rate. Correct Answer Incorrect Answer
      C RBI will decrease Repo Rate Correct Answer Incorrect Answer
      D All of the above. Correct Answer Incorrect Answer
      E None of the above. Correct Answer Incorrect Answer

      Solution

      If RBI will increase the repo rate then money supply will reduce and ultimately decrease the demand and then inflation. When RBI increases the Repo Rate then loans will become costly and people will keep money is banks to earn more interest. This process will decrease the money supply in the economy.

      Practice Next
      More Economic and Social Issues ESI Questions
      ask-question