Multiple choice general knowledge

What were reserve banks role in recession hit countries

  1. Provide bail outs

  2. Cut repo rates

  3. Reduce lending rates

  4. Release stimulus packages
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Central banks in recession-hit countries typically cut repo rates to stimulate economic activity. Lower repo rates reduce borrowing costs for commercial banks, encouraging them to lend more to businesses and consumers, which can help boost economic growth during a recession.

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