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Question : The rate at which RBI gives short-term loans to commercial banks is called:

Option 1: repo rate

Option 2: reverse repo rate

Option 3: bank rate

Option 4: cash reserve rate


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: repo rate


Solution : The correct option is the repo rate .

The repo rate is the interest rate at which the Reserve Bank of India (RBI) offers short-term loans to commercial banks. The phrase repo means a repurchase agreement. It is a tool for monetary policy that central banks employ to manage liquidity and regulate interest rates in the market.

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