n NISM Certifications
XV NISM Series XV
Medium

Which factors contribute to economic recovery from a recession?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Low interest rates

  2. B

    Low inflation

  3. Both low interest rates and low inflation

    Correct answer

  4. D

    Neither low interest rates nor low inflation

Why this is the answer

Low inflation allows easier monetary expansion, while low interest rates reduce borrowing costs, encouraging investment, consumption, and economic recovery.

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