📝 Multiple Choice Question
Economics
What is the usual treatment on repo rates by the Reserve Bank of India in case of a hawkish monetary policy stance?
A
Reduced sharply by more than 100 bps
B
Kept the same
C
Increased
D
Reduced gradually
Explanation
A hawkish monetary policy aims to curb inflation; therefore, the central bank typically increases the repo rate to make borrowing more expensive and reduce money supply.
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