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.
Option 1: Reserve Repo Rate
Option 2: Base Rate
Option 3: Marginal Rate
Option 4: Repo Rate
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 ______.
Option 1: repo rate
Option 2: reverse repo rate
Option 3: cash rate
Option 4: base rate
Question : Which of the following is the instrument of monetary policy used by RBI?
Option 1: Base rate
Option 2: Call rate
Option 3: Bank rate
Option 4: Discount rate
Question : The money supply is governed by the:
Option 1: Planning Commission
Option 2: Finance Commission
Option 3: Reserve Bank of India
Option 4: Commercial banks
Question : What will be the ratio of the interests earned by identical sum of money invested at the same rate of simple interest for 6 years and for 15 years respectively?
Option 1: 3 : 5
Option 2: 5 : 3
Option 3: 5 : 2
Option 4: 2 : 5
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