Mains Paper 3:Economy
Prelims level: REPO rate
Mains level: Impact of repo rate cut to reduce financial burden
The RBI has once again stepped in at the right time with measures that
will reduce the cost of capital and ease the financial burden on businesses
due to the extended lockdown.
With Friday’s repo rate cut of 40 basis points, the RBI has shavedoff
1.15 percentage points from the rate chart in the 58 days since the lockdown
began, bringing the repo rate down to 4% and the reverse repo rate to 3.35%.
Measures taken by the RBI:
The central bank may have played out its rate cut card for now, it
reserves some leverage for the future if economic conditions deteriorateeven
In fact, there are those who believe that the latest cut may be no more
than a sentiment booster as economic activity is at its nadirand there are
not many investment proposals on the anvilthat may benefit from the lower
Existing borrowers may be the ........................................
Q1. With reference to the National Dengue Day, consider the following
statements: 1. The dengue virus (DEN) comprises four distinct serotypes (DEN-1, DEN-2,
DEN-3 and DEN-4) which belong to the genus Flavivirus.
2. Culex mosquitoes is the main vector that transmits the viruses that cause
Which of the statements given above is/are correct? (a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2