B. Policies that keep interest rates artificially low and channel credit to preferred borrowers, often the government
C. Only high real interest rates
D. Complete liberalisation of interest rates
Answer: Option B
Solution (By JKSSB Mock Tests)
Financial repression encompasses a set of policies—interest-rate ceilings, high reserve requirements, directed credit and capital controls—that hold real interest rates low and facilitate cheap financing of the government.
Explanation:
Economic development is a broader concept than growth and includes improvements in living standards, health, education, reduction in poverty and inequality, as reflected in indices like HDI.
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