UPSC PRELIMS · ECONOMICS · MONETARY POLICY — EXPANSIONIST POLICY
If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate Select the correct answer using the code given below:
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EXPLANATION
An expansionary stance would lower restrictive rates/ratios; increasing the MSF rate would instead make bank borrowing more expensive.
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