Question

Now a days we read in the newspapers that Reserve Bank of India is introducing a series of rollbacks since the economic environment improved. In this series RBI may tighten its monetary policy following the revival of the global economy and Indian markets. Which among the following effects will be seen on “deposit rates” if RBI tightens its policy?
(A)The deposit rates will increase
(B)The deposit rates will decrease
(C)The deposit rates will remain unaltered
(D)Either Increase or decrease
(E)Decrease sharply

Answer 1

I think your answer is D

Answer 2

Answer-(D)Either Increase or decrease