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    • Question

      RBI raises repo by 50 bps. If bank lending was linked

      at repo + 2%, new rate =
      A Repo + 1.5% Correct Answer Incorrect Answer
      B Repo + 2.5% Correct Answer Incorrect Answer
      C Repo + 2% Correct Answer Incorrect Answer
      D Repo – 2% Correct Answer Incorrect Answer
      E Repo + 3% Correct Answer Incorrect Answer

      Solution

      Repo + 2% originally → with +0.5% increase → repo +2.5%.

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