Question

explain the role of reverse repo rate in increasing money supply

Answer 1

Heya....

Reverse repo rate is that rate at which commercial banks can park their surplus money with RBI....

@ Use in money supply....

---->>> Increase in reverse repo rate cause the push to submit money in RBI by this bank will do less credit creation and inflation will crubt.....

----->>> To increase money supply this rate decrease because at low rate banks not submit money with RBI and increase in credit creation....

Answer 2

Let us now look into the points of difference between the final goods and intermediate goods.

...

Difference between Final Goods and Intermediate Goods.

Final Goods Intermediate Goods

Final goods are ready to be consumed and therefore do not require any further processing Intermediate goods require further processing in order to be consumed