Ayushi Asked a Question
August 12, 2020 2:05 pmpts 30 pts
42. If the Reserve Bank of India lowers reserve requirements, which of the fol- lowing is most likely to happen to interest rates and nominal gross domestic product ? Nominal Gross Interest Rates Domestic Product (1) Increase Decrease (2) Increase Increase (3) Decrease Decrease (4) Decrcase Increase
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  • Nidhi taparia Best Answer
    The correct answer is (4). When RBI reduces reserve requirement, banks can give out more loans. This increases suply of money in the market, bringing down interest rates. People l...
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