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      Question

      The Reverse Repo Rate is used by RBI

      to:
      A Provide long-term loans to NBFCs Correct Answer Incorrect Answer
      B Control inflation Correct Answer Incorrect Answer
      C Absorb liquidity from the banking system Correct Answer Incorrect Answer
      D Promote exports Correct Answer Incorrect Answer
      E Decrease CRR Correct Answer Incorrect Answer

      Solution

      Reverse Repo is the rate at which RBI borrows from banks, used to absorb excess liquidity.

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