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What happens when Repo Rate is increased?
18. What happens when Repo Rate is increased?
- Lower Inflation
- Higher Inflation
- Higher Cash Reserve Ratio
- Lower Cash Reserve Ratio
Answer: A) Lower Inflation
Explanation:
During undeniable degrees of expansion, The Reserve Bank Of India makes solid endeavours to cut down the progression of cash in the economy. One method for doing this is by expanding the repo rate.