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Which of the following statements is/are correct?
1. Under the LTRO (Long Term Repo Operations), the RBI provides longer term loans to the banks at the prevailing Repo Rate.
2. The LTRO is a monetary policy tool used by the RBI to ensure transmission of key policy rates.
3. Under the Targeted Long Term Repo Operations (TLTRO), the RBI provides long-term loans to the banks with NPAs at the prevailing Repo Rates.
Select the correct answer using the code given below:
  • a)
    2 only
  • b)
    1 and 3 only
  • c)
    1 and 2 only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is/are correct?1. Under the LTRO (Lo...
  • The LTRO (Long Term Repo Operations) is a tool which allows the banks to borrow funds from the Reserve Bank of India (RBI) for a tenor of upto 1-year to 3-years at the Policy Repo Rate, against government securities. As the banks get long-term funds at lower rates, their cost of funds falls. In turn, they reduce interest rates for the borrowers. The RBI introduced this tool to inject liquidity in the system, as well as to ensure transmission of rates.
  • TLTRO stands for the Targeted Long Term Repo Operations. It is same as the LTRO, with a difference that the money borrowed by the banks under this scheme has to be deployed in investment-grade corporate bonds, commercial papers and non-convertible debentures. It means that this LTRO should be targeted towards investment- grade corporate bonds, commercial papers and non-convertible debentures. Hence the name Targeted LTRO.
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Which of the following statements is/are correct?1. Under the LTRO (Long Term Repo Operations), the RBI provides longer term loans to the banks at the prevailing Repo Rate.2. The LTRO is a monetary policy tool used by the RBI to ensure transmission of key policy rates.3. Under the Targeted Long Term Repo Operations (TLTRO), the RBI provides long-term loans to the banks with NPAs at the prevailing Repo Rates.Select the correct answer using the code given below:a)2 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
Question Description
Which of the following statements is/are correct?1. Under the LTRO (Long Term Repo Operations), the RBI provides longer term loans to the banks at the prevailing Repo Rate.2. The LTRO is a monetary policy tool used by the RBI to ensure transmission of key policy rates.3. Under the Targeted Long Term Repo Operations (TLTRO), the RBI provides long-term loans to the banks with NPAs at the prevailing Repo Rates.Select the correct answer using the code given below:a)2 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct 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 statements is/are correct?1. Under the LTRO (Long Term Repo Operations), the RBI provides longer term loans to the banks at the prevailing Repo Rate.2. The LTRO is a monetary policy tool used by the RBI to ensure transmission of key policy rates.3. Under the Targeted Long Term Repo Operations (TLTRO), the RBI provides long-term loans to the banks with NPAs at the prevailing Repo Rates.Select the correct answer using the code given below:a)2 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct 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 statements is/are correct?1. Under the LTRO (Long Term Repo Operations), the RBI provides longer term loans to the banks at the prevailing Repo Rate.2. The LTRO is a monetary policy tool used by the RBI to ensure transmission of key policy rates.3. Under the Targeted Long Term Repo Operations (TLTRO), the RBI provides long-term loans to the banks with NPAs at the prevailing Repo Rates.Select the correct answer using the code given below:a)2 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
Solutions for Which of the following statements is/are correct?1. Under the LTRO (Long Term Repo Operations), the RBI provides longer term loans to the banks at the prevailing Repo Rate.2. The LTRO is a monetary policy tool used by the RBI to ensure transmission of key policy rates.3. Under the Targeted Long Term Repo Operations (TLTRO), the RBI provides long-term loans to the banks with NPAs at the prevailing Repo Rates.Select the correct answer using the code given below:a)2 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
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