Question

How Reverse Repo rate helps in correcting Excess demand situation​

Answer 1

Answer:

During excess demand in the economy, the reverse repo rate is increased so the commercial banks increase their reserves and park more surplus funds with central bank which reduces the money supply in the economy to combat inflation...

Answer 2

Hey mate ☺️

$\huge \red {Ur \: Answer}$

During excess demand in the economy, the reverse repo rate is increased so the commercial banks increase their reserves and park more surplus funds with central bank which reduces the money supply in the economy to combat inflation.

Hope it helps ♥️✌️