B. Policies that keep interest rates artificially low and channel credit to preferred borrowers, often the government
C. Only high real interest rates
D. Only the absence of any credit controls
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.
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