Question

In order to control inflation, the Central Bank need to ______.

विकल्प

• Increase Repo Rate

• Increase Reserve Ratio

• Both increase repo rate and increase reserve ratio

• None of these

Answer 1

In order to control inflation, the Central Bank need to increase repo rate and increase reserve ratio.

Explanation:

A higher repo rate makes borrowing costlier, while a higher reserve ratio leaves commercial banks with less money to lend. Both measures help restrict credit and curb inflation.