Multiple choice

The reverse repo rate in March 2011 was

  1. 5%

  2. 5.5%

  3. 5.75%

  4. 6.5%

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The reverse repo rate in March 2011 was set at 5.75% by the Reserve Bank of India. This rate represents the interest RBI pays to banks when they park surplus funds with the central bank, and is a key monetary policy tool for controlling liquidity.