English, asked by danisai880, 10 months ago

Discuss the relationship between reserve money and money supply

Answers

Answered by ashishalok122002

0

Answer:

A slight increase in the reverse repo rate will decrease the supply of money and vice-versa. Hike in reverse repo rate means that the commercial banks will get higher interest on the funds deposited with RBI, which ultimately decreases the money supply in the market.

Explanation:

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