UPSC Civil Services Prelims 2014
Question 13 of 53Indian Economy
If the Reserve Bank of India adopts an expansionary monetary policy, which one of the following is it most likely to do?
AIncrease the repo rate
BInject liquidity into the economy and reduce borrowing costs
CRaise the cash reserve ratio sharply
DReduce government expenditure
Correct Answer
The correct answer is hidden
Explanation
29 words hidden ... policy rates, easing liquidity conditions, or lowering certain reserve requirements. Raising rates or tightening ... 28 words hidden