UGC NET
Ayushi Asked a Question
August 12, 2020 2:05 pmpts 30 pts
  • UGC NET
  • Economics

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 pro

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
  • 1 Answer(s)
Answer Now
  • 0 Likes
  • 1 Comments
  • Shares
  • 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...
    Show more
    Likes(0) Reply(0)
How Eduncle Helps You ?
StudentTutorInstitutionApp
Help
FAQsPayment TermsRefund PolicyAsk Support
Head Office :
MPA 44, 2nd floor, Rangbari main Road Mahaveer Nagar II, Kota (Raj.) - 324005

Branch Office (Jaipur):
Shyam Tower, Plot No. F2, 6th Floor Amrapali Circle,
Vaishali Nagar, Jaipur, Rajasthan 302021

Mail: info@eduncle.com
All Rights Reserved © Eduncle.com