Question : What is the meaning of reverse repo rate?
Option 1: The rate at which RBI borrows money from foreign banks.
Option 2: The rate at which RBI borrows money from commercial banks.
Option 3: The rate at which commercial banks borrow money from RBI.
Option 4: The rate at which commercial banks borrow money from foreign banks.
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Correct Answer: The rate at which RBI borrows money from commercial banks.
Solution : The correct option is The rate at which RBI borrows money from commercial banks.
Through the sale of securities and a promise to buy them back at a later time, the Reserve Bank of India borrows funds from commercial banks under a reverse repo agreement. Central banks employ it as a tool to remove excess liquidity from the banking sector.
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Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.
Question : The minimum rate below which banks are not allowed to lead money except in cases specified by the Reserve Bank of India is called ______.
Question : Money multiplier uses which of the following monetary instruments for its calculation?
Question : Which of the following is the instrument of monetary policy used by RBI?
Question : The money supply is governed by the:
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