Deflation means the supply of money is less than the demand for money

1.	Deflation means the supply of money is less than the demand for money and hence the prices of the goods and services fall.
Answer» ‘Repo rate’ refers to the rate at which Reserve Bank of India lends money to commercial banks when there is lack of funds in the commercial banks. ‘Reverse Repo’ rate is a short term borrowing rate at which RBI borrows money from commercial banks.

Deflation means the supply of money is less than the demand for money and hence the prices of the goods and services fall.

Answer»

‘Repo rate’ refers to the rate at which Reserve Bank of India lends money to commercial banks when there is lack of funds in the commercial banks.

‘Reverse Repo’ rate is a short term borrowing rate at which RBI borrows money from commercial banks.