What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%?
A reduction in the Bank Rate signals easier monetary conditions and tends to encourage credit expansion. The expected effect is more liquidity in the market.
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What will be the impact if Reserve Bank of India reduces the Bank Rate by 1%?
Answer and explanation
Correct answer B
A reduction in the Bank Rate signals easier monetary conditions and tends to encourage credit expansion. The expected effect is more liquidity in the market.
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Telangana SET (TG SET)