Economy, asked by wwwrammanoharg1242, 10 months ago

What Happens When Reverse Repo Rate Decreases

Answers

Answered by Amrishaverma
1

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.

Answered by skyfall63
0

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.

To know more:

Explain the role of reverse repo rate in controlling money supply ...

https://brainly.in/question/7657045

Decrease in repo and reverse repo rate both increase inflation ...

https://brainly.in/question/8735763

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