Question : ____________ is the rate at which the central bank lends money to commercial banks to meet their short term needs.
Option 1: Bank rate
Option 2: Repo rate
Option 3: Reverse repo rate
Option 4: Legal reserve reservation.
Correct Answer: Repo rate
Solution : Repo rate is the rate at which the central bank lends money to commercial banks to meet their short term needs. Hence, Option B is correct.
Question : ________________ is the rate at which the central bank lends money to commercial banks to meet their long term needs.
Question : The reverse repo rate is the rate at which Central Bank:
Option 1: Lends money to commercial banks short-term
Option 2: Lends money to commercial banks for long-term
Option 3: Accepts deposits from commercial banks
Option 4: None of these
Question : ___________ is the rate at which the central bank lends money to commercial banks.
Option 1: Repo rate
Option 2: Reverse repo rate
Option 3: Cash reserve ratio (CRR)
Option 4: Statutory liquidity ratio (SLR)
Question : The rate at which the Reserve Bank of India lends to other commercial banks for the short term has been reduced. What is this rate called?
Option 1: Cash Reserve Rate
Option 2: Reverse Repo Rate
Option 3: Bank Rate
Option 4: Repo Rate
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
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