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      Question

      Identify the correct statements. A. If the Repo

      Rate goes up, money from other countries will come into the country. B. If the Repo Rate goes down, money will come into the country from other countries. C. There is no relation between the Repo Rate and inflow of foreign funds in India.
      A Only A correct Correct Answer Incorrect Answer
      B Only B correct Correct Answer Incorrect Answer
      C Only C correct Correct Answer Incorrect Answer
      D Only A and B are correct Correct Answer Incorrect Answer
      E None correct Correct Answer Incorrect Answer

      Solution

      Repo Rate high means interest rates are high and money will become costlier and there will be lesser capital expenditure from the corporates and which will reduce the pace of growth.

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