Repo rate relates to ____
Repo rate relates to ____.
(a) Short-term borrowings by commercial banks
(b) Long-term borrowings by commercial banks
(c) Disinvestments
(d) Dissavings
Anurag Pathak Changed status to publish January 3, 2024
Ans – (a)
Explanation:-
Repo Rate is the rate at which the central bank of a country lends money to commercial banks to meet their short-term needs.
Additional Information:-
The repo rate is also called the Repurchase rate.
The repo rate is a monetary policy of the central bank to control the money creation.
An increase in the repo rate decreases the money creation and vice-versa.
Anurag Pathak Changed status to publish January 3, 2024
