Civil Services UPSC CAPF (Assistant Commandants) Test Series 2025 Current Affairs Business and Economy
How does the Reserve Bank of India (RBI) utilise the repo rate to control inflation?
1
Increasing the repo rate and making borrowing more expensive for banks, thereby reducing the money supply in the economy
2
Decreasing the repo rate to increase the money supply, encouraging spending and investment
3
Maintaining a constant repo rate regardless of inflation levels
4
Increasing the repo rate to directly lower the prices of goods and services