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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.

Option 1: Reserve Repo Rate

Option 2: Base Rate

Option 3: Marginal Rate

Option 4: Repo Rate


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Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Repo Rate


Solution : The correct option is the Repo Rate.

The "Repo Rate" is the interest rate at which commercial banks get loans from the Reserve Bank of India (RBI). "Repo" stands for "Repurchase Agreement." Commercial banks can sign a buyback arrangement with the RBI and pledge government securities as security when they need money. The repo rate is the interest rate the RBI charges on this type of short-term borrowing.

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