If the interest rate is decreased in an economy, it will

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Aptitude

TNPSC G4

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Q:70

If the interest rate is decreased in an economy, it will

decrease the consumption expenditure in the economy

increase the tax collection of the Government

increase the investment expenditure in the economy

increase the total savings in the economy

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In the context of Indian economy which of the following is/are the purpose/purposes of 'Statutory Reserve Requirements'?
1.To enable the Central Bank to control the amount of advances the banks can create
2.To make the people's deposits with banks safe and liquid
3.To prevent the commercial banks from making excessive profits
4.To force the banks to have sufficient vault cash to meet their day-to-day requirements
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