🎴 Flashcard Mode
Reverse Repo Rate
Card1 / 15
Mastered0
Review0
QuestionClick to flip
What is the primary function of the Reverse Repo Rate?
AnswerClick to flip back
A
To encourage banks to borrow money from the RBI.
💡 Explanation:
The Reverse Repo Rate is a tool used by the RBI to encourage banks to borrow money from the central bank by offering them a higher interest rate than the Repo Rate.