What Happens When Reverse Repo Rate Decreases
Answers
Answer:
When the federal reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to hold in reserves, allowing them to make more loans to consumers and businesses.
If the reverse repo rate decreases there will be changes in the economic growth.
Explanation:
Reverse repo rate is a strategy used by the Reserve Bank of India (Central Bank Of India) to borrow money from commercial banks. This is used to bring changes in nations economic growth. If the reverse repo rate decreases there will be changes in the economic growth in order to balance and turn it to stabilizing state the consumers apply for loans from the bank and this helps the bank to increase their rating.
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