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Which of the following best describes the term “Reverse Repo Rate”, sometimes seen, in the news?
  • a)
    The rate of the interest that the commercial banks pay to RBI on long-term loans from the RBI.
  • b)
    The rate of interest that RBI pays to commercial banks that offer long term loans to RBI.
  • c)
    The rate of interest that RBI pays to commercial banks that offer a short term loan to RBI.
  • d)
    The rate of interest that commercial banks pay to RBI that borrow short-term loans from RBI.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following best describes the term “Reverse Repo Rat...
The Reverse Repo Rate is an important Monetary Policy tool used by the Reserve Bank of India (RBI) to control liquidity and inflation in the economy. The interest rate at which the RBI borrows money from banks for the short term is defined as Reverse Repo Rate. The Reverse Repo Rate helps the RBI get money from the banks in times of need. In return, the RBI offers attractive interest rates to them. The banks also voluntarily park excess funds with the central bank as it provides them with an opportunity to earn higher interest on surplus money lying idle.
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Which of the following best describes the term “Reverse Repo Rate”, sometimes seen, in the news?a)The rate of the interest that the commercial banks pay to RBI on long-term loans from the RBI.b)The rate of interest that RBI pays to commercial banks that offer long term loans to RBI.c)The rate of interest that RBI pays to commercial banks that offer a short term loan to RBI.d)The rate of interest that commercial banks pay to RBI that borrow short-term loans from RBI.Correct answer is option 'C'. Can you explain this answer?
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Which of the following best describes the term “Reverse Repo Rate”, sometimes seen, in the news?a)The rate of the interest that the commercial banks pay to RBI on long-term loans from the RBI.b)The rate of interest that RBI pays to commercial banks that offer long term loans to RBI.c)The rate of interest that RBI pays to commercial banks that offer a short term loan to RBI.d)The rate of interest that commercial banks pay to RBI that borrow short-term loans from RBI.Correct answer is option 'C'. Can you explain this answer? for Current Affairs 2025 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about Which of the following best describes the term “Reverse Repo Rate”, sometimes seen, in the news?a)The rate of the interest that the commercial banks pay to RBI on long-term loans from the RBI.b)The rate of interest that RBI pays to commercial banks that offer long term loans to RBI.c)The rate of interest that RBI pays to commercial banks that offer a short term loan to RBI.d)The rate of interest that commercial banks pay to RBI that borrow short-term loans from RBI.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Current Affairs 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following best describes the term “Reverse Repo Rate”, sometimes seen, in the news?a)The rate of the interest that the commercial banks pay to RBI on long-term loans from the RBI.b)The rate of interest that RBI pays to commercial banks that offer long term loans to RBI.c)The rate of interest that RBI pays to commercial banks that offer a short term loan to RBI.d)The rate of interest that commercial banks pay to RBI that borrow short-term loans from RBI.Correct answer is option 'C'. Can you explain this answer?.
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