Which of the following is/are component/components of a Repo Transaction?1. Cash Reserve2. Long-Term Borrowing3. Hedging and Leveraging4. SecuritiesSelect the correct answer using the codes given below:a) 1 and 2 onlyb) 3 and 4 onlyc) 1, 3 and 4 onlyd) 1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?

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Which of the following is/are component/components of a Repo Transaction?

1. Cash Reserve

2. Long-Term Borrowing

3. Hedging & Leveraging

4. Securities

Select the correct answer using the codes given below:

a)
1 and 2 only
b)
3 and 4 only
c)
1, 3 and 4 only
d)
1, 2, 3 and 4

Correct answer is option 'C'. Can you explain this answer?

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Which of the following is/are component/components of a Repo Transact...

Component a is correct: Cash Reserve, Banks borrow money from RBI to maintain liquidity or cash reserve as a precautionary measure.

Component b is incorrect: Long-Term Borrowing is not a component of repo transactions. Short-Term Borrowing is a component of repo transactions. Short-Term Borrowing - RBI lends money for a short period of time, maximum being an overnight post which the banks buy back securities deposited at a predetermined price.

Component c is correct: Hedging & Leveraging, RBI aims to hedge and leverage by buying securities and bonds from the banks and provide cash to them in return for the collateral deposited.

Component d is correct: Securities, RBI accepts collateral in the form of gold, bonds etc.

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Which of the following is/are component/components of a Repo Transaction?1. Cash Reserve2. Long-Term Borrowing3. Hedging & Leveraging4. SecuritiesSelect the correct answer using the codes given below:a) 1 and 2 onlyb) 3 and 4 onlyc) 1, 3 and 4 onlyd) 1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?

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Which of the following is/are component/components of a Repo Transaction?1. Cash Reserve2. Long-Term Borrowing3. Hedging & Leveraging4. SecuritiesSelect the correct answer using the codes given below:a) 1 and 2 onlyb) 3 and 4 onlyc) 1, 3 and 4 onlyd) 1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is/are component/components of a Repo Transaction?1. Cash Reserve2. Long-Term Borrowing3. Hedging & Leveraging4. SecuritiesSelect the correct answer using the codes given below:a) 1 and 2 onlyb) 3 and 4 onlyc) 1, 3 and 4 onlyd) 1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is/are component/components of a Repo Transaction?1. Cash Reserve2. Long-Term Borrowing3. Hedging & Leveraging4. SecuritiesSelect the correct answer using the codes given below:a) 1 and 2 onlyb) 3 and 4 onlyc) 1, 3 and 4 onlyd) 1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?.

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