A hike in the repo rate by the RBI signifies a tight money policy aimed at controlling inflation by making credit more expensive and reducing money supply.
If RBI hike repo rate, it means
Asked in STAFF NURSE UNANI 2023 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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Answer: A. RBI's action indicates the implementation of tight money policy
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