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If an economy is to control recession like most of the Euro-Zone nations, which of the following can be appropriate:
Reducing Repo Rate
Reducing CRR
Both a) and b)
None of a) and b)
Certainly! Here's an explanation of the relevant options:
- Reducing Repo Rate (Option 1):
- Lowering the repo rate can make borrowing cheaper.
- Encourages businesses and consumers to spend and invest.
- Can stimulate economic growth.
- Reducing CRR (Option 2):
- Lowering the Cash Reserve Ratio (CRR) increases funds available to banks.
- Enables banks to lend more to businesses and individuals.
- Helps stimulate economic activity.
- Both a) and b) (Option 3):
- Combining lower repo rate and CRR boosts liquidity and reduces borrowing costs.
- Amplifies economic growth potential.
- None of a) and b) (Option 4):
- This suggests neither action is appropriate, which isn't typical in recession control.
Both options a) and b) are commonly used to combat recession.
Option 3 - Both a) and b) is the correct choice.
By: santosh ProfileResourcesReport error
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