Multiple choice

What is a Repo Rate?

  1. It is a rate at which RBI sells government securities to banks.

  2. It is a rate at which banks borrow money from RBI.

  3. It is a rate at which RBI allows small loans in the market.

  4. It is a rate offered by banks to their most valued customers or prime customers.

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct answer is (2). 

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