[PPSC PRINCIPAL, ITI (WOMEN) 2024]

12. With reference to increase in Reverse Repo Rate, consider the following:

1. The supply of money in financial market will increase.

2. There will be rise in inflation.

Which of the above statement(s) is/are correct?

1. 1 only

2. 2 only

3. Both 1 and 2

4. Neither 1 nor 2

Correct Answer :

Neither 1 nor 2