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Repo rate is also known as

ARepurchase Agreement

BReserve Purchase

CRevolving Credit

DRetail Banking

Answer:

A. Repurchase Agreement

Read Explanation:

Repo Rate:

  • It is a short-term interest rate which RBI charges on commercial banks on loans given by RBI
  • Repo rate is also known as Repurchase Agreement or Repurchasing Option.
  • At the time of inflation, RBI increases repo rate.
  • At the time of deflation, RBI reduces repo rate.

Related Questions:

The first full fledged Central Bank of the World
The bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country is ?

Which of the following factors can directly affect the Credit Creation ability of the banks?

  1. Cash Reserve Ratio
  2. REPO Rate
  3. Statutory Liquidity Ratio
  4. Inflation
    At the time of inflation, RBI --- the securities, while at the time of deflation, RBI --- the securities from banks.
    At the time of deflation, RBI --- reverse repo rate.