Question
The rate at which RBI gives short term loan to commercial banks is called
Answer: Option B
Answer: (b)
The rate at which RBI gives short term loans to commercial banks against securities is known as the Repo rate. A reduction in the repo rate helps banks to get money at a cheaper rate.
When the repo rate increases, borrowing from the central bank becomes more expensive. In contrast, the reverse repo rate is the rate at which banks can park surplus funds with RBI.
Was this answer helpful ?
Answer: (b)
The rate at which RBI gives short term loans to commercial banks against securities is known as the Repo rate. A reduction in the repo rate helps banks to get money at a cheaper rate.
When the repo rate increases, borrowing from the central bank becomes more expensive. In contrast, the reverse repo rate is the rate at which banks can park surplus funds with RBI.
Was this answer helpful ?
More Questions on This Topic :
Question 3. Indian Economy is characterised as....
Question 4. Depreciation is equal to....
Question 6. Money laundering normally involves....
Question 7. The major aim of devaluation is to
....
Latest Videos
Latest Test Papers
Submit Solution