Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.

Option 1: Reserve Repo Rate

Option 2: Base Rate

Option 3: Marginal Rate

Option 4: Repo Rate


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Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Repo Rate


Solution : The correct option is the Repo Rate .

The "Repo Rate" is the interest rate at which commercial banks get loans from the Reserve Bank of India (RBI). "Repo" stands for "Repurchase Agreement." Commercial banks can sign a buyback arrangement with the RBI and pledge government securities as security when they need money. The repo rate is the interest rate the RBI charges on this type of short-term borrowing.

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