n NISM Certifications
XV NISM Series XV
Medium

Which factors contribute to economic recovery from recession?

Practice question from NISM XV Mock Test 2 — 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

Recovery occurs when monetary policy is loose (low interest rates) and prices are stable (low inflation), encouraging spending and investment.

Test yourself for real

Take a full NISM Series XV mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.