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Which one of the following is considered as the 'Policy Rate' in the monitory policy statement of India?

A180 days Government Bond Rate

B92 days Treasury Bill Rate

CLIBOR Rate

DRepo Rate

Answer:

D. Repo Rate

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.

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  2. REPO Rate
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    Sveriges Riks Bank, Sweden was established in
    At the time of inflation, RBI --- the securities, while at the time of deflation, RBI --- the securities from banks.
    Imperial Bank of India was established on