Multiple choice

What do you mean by Reverse Repo Rate?

  1. Rate at which banks charge on commercial lending.

  2. The rate at which banks borrow money from RBI.

  3. The rate at which Reserve Bank of India (RBI) borrows money from banks.

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Reverse Repo Rate is the interest rate at which the Reserve Bank of India (RBI) borrows money from commercial banks within the country. It is a monetary policy instrument used to control the liquidity in the economy.

Keep practicing — related questions