Why REPO rate is being hiked to control Inflation ?
- 4 Answers
- 14473 Views
- GMR, I also Faced
- E-Mail Answers
Answer Posted / renuka
REPO RATE IS THE RATE AT WHICH CENTRAL BANK OF A COUNTRY LENDS LOANS TO COMMERCIAL BANKS.. BY HIKING THE REPO RATE THE COMMERCIAL BANKS WILL GET LOANS AT HIGHER INTEREST RATE FROM CENTRAL BANK AND THUS THEY WILL PROVIDE LOANS TO THEIR CUSTOMERS AT HIGH INTEREST RATE.. THIS WILL DECREASE THE FLOW OF MONEY IN THE MARKET AND PEOPLE WILL NOT BUY MORE PRODUCTS. THUS, THE DEMAND IN THE MARKET WILL DECREASE AND IT WOULD HELP IN CONTROLLING INFLATION..
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
What are the things that have to be kept in mind while entering into stock exchange?
How do you feel about committing yourself to another three years of exams?
What is NEFT / RTGS?
Explain the process to compute it?
What are your strengths and weaknesses? How will you overcome your weakness?
Tell the name of the rbi governor of india?
What are the problems that you faced when demonetization was done overnight?
Do you have interest in sports? If yes, which is your favorite sport?
What do you mean by assessment year?
Define OROP?
Can I Be Discriminated Against For Filing Bankruptcy?
Tell about the fixed deposits?
What is a probation period?
Define IPC.
Why do you want to work for NABARD?
