What is Repo Rate?
A. Rate at which RBI allows temporary loan facilities to commercial banks against government securities only on the condition that the bank will repurchase the securities within a short period.
B. Rate offered by banks to their prime customers.
C. When any bank has excess cash, securities are bought from RBI against cash with the condition that they will resell the securities to RBI on a pre fixed day and price.
D. When a bank is in need of cash it can discount bills of exchange and avail loan facilities from Reserve Bank of India.
Answer:A
What is Repo Rate?
A. Rate at which RBI allows temporary loan facilities to commercial banks against government securities only on the condition that the bank will repurchase the securities within a short period. B. Rate offered by banks to their prime customers. C. When any bank has excess cash, securities are bought from RBI against cash with the condition that they will resell the securities to RBI on a pre fixed day and price. D. When a bank is in need of cash it can discount bills of exchange and avail loan facilities from Reserve Bank of India.