Question

What is the effect of increasing reverse repo rate on money supply in the market

Answer 1

Explanation:

An increase in the reverse repo rate will decrease the money supply and vice-versa, other things remaining constant. An increase in reverse repo rate means that commercial banks will get more incentives to park their funds with the RBI, thereby decreasing the supply of money in the market

Answer 2

Explanation:

effect of increasing of rate of money e in individual steps