Question

    What is the name of the rate by which RBI

    lends money to banks?
    A Bank Rate Correct Answer Incorrect Answer
    B Repo Rate Correct Answer Incorrect Answer
    C Statutory liquidity Rate Correct Answer Incorrect Answer
    D Reverse Repo Rate Correct Answer Incorrect Answer

    Solution

    Repo Rate is the rate at which the Reserve Bank of India lends money to commercial banks or financial institutions in India against government securities. The current Repo Rate 2021 is at 4%. Changes in Repo Rate affect the flow of money in the market.

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