Multiple Choice Questions on If the RBI hikes the repo rate the liquidity in the market will ........ for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

If the RBI hikes the repo rate the liquidity in the market will ........

Economic Affairs Money Supply and Monetary Policy
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    If the RBI hikes the repo rate, the liquidity in the market will

    Increase

    Incorrect Answer

    Decrease

    Correct Answer

    Remains same

    Incorrect Answer

    Remains same but becomes costlier

    Incorrect Answer
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    Explanation:

    If the RBI hikes the repo rate, the liquidity in the market will decrease.

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