Question

Which of the following statements is correct

A. In Repo transactions banks sell government securities to RBI with a repurchase agreement

B. Repo transactions happens only against the security of government securities including T-bills

A a. Only A is correct Correct Answer Incorrect Answer
B b. Only B is Correct Correct Answer Incorrect Answer
C c. Both A & B are Incorrect Correct Answer Incorrect Answer
D d. Both A & B are Correct Correct Answer Incorrect Answer

Solution

The correct answer is D

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