Question

which of the following measure is adopted to reduce inflation option reduction in bank rate, reduction in repo rate, increase in government expenditure cuts in government spending

Answer 1

Thank you for this question. Please find the answer below: 

The measure adopted to to reduce inflation is the following; 

Reduction in Repo Rate. 

Repo rate is the rate at which the central bank lends money to the commercial banks in case of shortfall of funds or assets etc. The central bank reduces money supply through reduction in repo rate in order to control inflation.