New RBI Grade B 2025 Notification will come Soon! Enroll Here

    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.

    Practice Next

    Relevant for Exams: