Question 13 of 33Indian Economy
If the RBI reduces the Repo Rate, what is the most likely immediate effect?
ABorrowing cost for banks from RBI increases
BLiquidity conditions generally tighten automatically
CCost of funds for banks from RBI decreases and credit conditions may ease
DGovernment revenue rises immediately
Correct Answer
The correct answer is hidden
Explanation
28 words hidden ... for banks falls, which can ease overall credit conditions and encourage lending and investment, depending on ... 26 words hidden