Multiple choice

Interest rates in India have been reduced in recent years for a number of objectives.

  1. To induce private investments
  2. To facilitate cheap public borrowing
  3. To encourage savings
  4. To reduce economic inequalities

Which of the above is/are not correct ?

  1. 1 and 2

  2. 2 and 3

  3. 3 and 4

  4. 2 and 4

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Reducing interest rates is intended to stimulate investment (1) and lower borrowing costs (2). Therefore, these are correct objectives, making them the 'not correct' choices in the context of the question asking for what is NOT an objective.