Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY2 Marks
Question
Define Repo rate and Reverse Repo rate?
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Answer
‘Repo rate’ refers to the rate at which Reserve Bank of India lends money to commercial banks when there is lack of funds in the commercial banks. ‘Reverse Repo’ rate is a short term borrowing rate at which $RBI$ borrows money from commercial banks.
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