Economy, asked by sannayamittal, 3 months ago

RBI reduces repo rate by 25 base point read the above headlines ans answer thr following questions 1 why do you think RBI has taken such a step. 2 to what will be the impact of such step on the money supply in the economy of India​

Answers

Answered by viditu356
1

Answer:

R. B. I reduced repo rate because of deflation in an economy

the ultimate impact of cutting repo rate (repurchase rate) will leads to rise in credit creation capacity of commercial banks which leads to rise in money supply in an economy

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