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poonam

· started a discussion

· 1 Months ago

related to economy (Question:956518.0)

if rbi is forced decrease the repo rate drastically and has to keep the rate low more than three consecutive quarter then economy is going through depression.... plz explain

Question:

If the RBI is forced decrease the Repo Rate drastically and has to keep the rate low for more than three consecutive quarters, then the economy is going through – 

Options:
A)

Recession

B)

Depression

C)

Inflation

D)

Depreciation

E)

Growth

Solution:

Ans: (b)

If the RBI is forced decrease the Repo Rate drastically and has to keep the rate low for more than three consecutive quarters, then the economy is going through depression. The RBI will try to increase the monetary supply to increase the demand.

Knowledge Expert

· commented

· 1 Months ago

If the RBI is forced decrease the Repo Rate drastically and has to keep the rate low for more than three consecutive quarters, then the economy is going through depression.
The Reserve Bank of India (RBI) today cut repo rate for fourth time this year as benign inflation provides the central bank room to help an economy that is growing at its slowest in nearly five years. The RBI's monetary policy committee, led by governor Shaktikanta Das, lowered repo rate by 35% basis points to 5.4%
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