1 View

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.

SSC CGL Complete Guide

Candidates can download this ebook to know all about SSC CGL.

Download EBook

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
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