UGC NET
profile-img
Eduncle Asked an Mcq
March 2, 2020 11:58 am
  • UGC NET
  • Economics

Given below are two statements – one is labelled as Assertion (A) and the other is labelled as Reason (R) :

Assertion (A) : In order to control inflationary tendencies, RBI raises the repo rate
Reason (R) : By so during, RBI wishes to control consumption demand
In the light of the above two statements choose the correct option :  

Choose Your Answer:
  • 0 Attempts
Submit Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • Eduncle Best Answer

    In order to control inflationary tendencies, RBI raises the Repo Rate. Implies reduction in interest Rates which means consumer has to kay lesser amount of interest.

    Likes(0) Reply(0)