Advertisements
Advertisements
प्रश्न
If the RBI increases the repo rate, which of the following is the most likely immediate effect on the economy?
पर्याय
Loans become cheaper, and credit expands
Banks reduce deposits with the RBI and lend more
Loans become costlier, and credit shrinks
Banks earn less on funds parked with the RBI
MCQ
Advertisements
उत्तर
Loans become costlier, and credit shrinks
Explanation:
A higher repo rate makes borrowing from the RBI costlier for banks, so banks raise lending rates, making loans costlier and reducing credit in the economy.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
