When commercial banks need funds for short period, they sell some securities which are held by them to RBI with a repurchase agreement at a particular date. This rate is called
A. Reverse repo rate
B. Repo rate
C. Bank rate
D. Cash reserve ratio
Answer:B
When commercial banks need funds for short period, they sell some securities which are held by them to RBI with a repurchase agreement at a particular date. This rate is called
A. Reverse repo rate B. Repo rate C. Bank rate D. Cash reserve ratio