Question
A rate at which RBI (Reserve Bank of India) lends to
commercial banks by purchasing securities is know as ______Solution
The rate at which RBI lends to commercial banks by purchasing the securities is called the repo rate. The bank rate is the rate at which RBI lends to commercial banks without purchasing the securities.
Consider the following statements regarding instruments of Monetary Policy:
I. The Repo rate is the interest rate at which the Reserve Bank provi...
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