If an economy is to control recession like most of the Euro Zone nations which of the following can ...........

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.

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