Deficient demand requires expansionary monetary policy to increase money supply and credit. Selling securities, raising margin requirements and raising the bank rate are contractionary. Reducing the reverse repo rate discourages banks from parking surplus with RBI, pushing them to lend more, which expands credit and demand.
Economics all across the globe are facing the problem of deficient demand post covid 19. Such a situation in India can be corrected by : (Choose the…
CUET UG 2022 — Economics Macro
2022mcqmedium
Economics all across the globe are facing the problem of deficient demand post covid 19. Such a situation in India can be corrected by : (Choose the correct alternative).
Official previous-year question
Verified 13 Jul 2026.
Options
- A
Selling government securities to the Commercial Banks by the Reserve Bank of India.
- B
Raising of the margin requirements by the Reserve Bank of India.
- C
Reducing the reverse repo rate by the Reserve Bank of India.
- D
Raising of the bank rate by the Reserve Bank of India.
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