4 Views

Question : The interest rate at which the Reserve Bank of India provides overnight liquidity to banks is called ________.

Option 1: Reverse repo rate

Option 2: Marginal standing facility rate

Option 3: Repo rate

Option 4: Leverage rate


Recommended : Get important details about BEL First Grade College, Bangalore. Download Brochure
Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Repo rate


Solution : The correct option is the Repo rate .

The repo rate is when the central bank lends money to commercial banks against government securities. This is short-term borrowing in which banks sell government securities to the RBI. All this is done through an agreement that says the g-sec is repurchased.

Compare Colleges

College Comparison based on Courses, Placement, Rank, Fee

Compare Now

Know More About

Related Questions

Parul University BBA Admissio...
Apply
India's youngest NAAC A++ accredited University | NIRF rank band 151-200 | 2200 Recruiters | 45.98 Lakhs Highest Package
UPES Dehradun | B.Com Admissi...
Apply
#41 in NIRF | 50 LPA Highest CTC, Ranked #1 in Academic Reputation in India by QS World University Rankings
Amity University BA Admission...
Apply
Ranked amongst the top 3% of universities globally (QS Rankings)
UPES | BBA Admissions 2025
Apply
#41 in NIRF, NAAC ‘A’ Grade | 100% Placement, up to 30% meritorious scholarships
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
Pearl Academy BBA 2025
Apply
No. 1 Design & Fashion Institute by ASSOCHAM, India Today, Outlook and The Week rankings
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books