[Solved] If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimize 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

Q87. If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

1. Cut and optimize 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

A. 1 and 2 only

B. 2 only

C. 1 and 3 only

D. 1, 2 and 3

Answer: B

• Expansionary Monetary Policy: Lower interest rates decrease the cost of borrowing money, which encourages consumers to increase spending on goods and services and businesses to invest in new equipment.