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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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