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Rate compensation :

(a) Increases bandwidth

(b) Attenuation

(c) Increases damping factor

(d) Second order

The question was asked in an interview.

I would like to ask this question from Tuning of PID Controllers in section Design of Control Systems

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Right option is (c) Increases damping factor

Easy explanation: Damping factor is increased for reducing the oscillations and increasing the stability and speed of response which are the essential requirements of the control system and damping factor is increased by the rate compensation.

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