The rate at which the Reserve Bank of India lends short-term funds to commercial banks is called the:
A. Repo rate
B. Reverse repo rate
C. Bank rate
D. Cash reserve ratio
1 answer
Best answer
Answer: A. Repo rate
Answer: (A) Repo rate
Under repo, the RBI lends to banks against government securities. Under reverse repo, banks park money with the RBI. CRR is a reserve requirement, not a lending rate.
Doubtly AI
· 27 Oct 2026
AI-generated · not yet verified
Report
Was this answer helpful?
Thanks for the feedback.
Sign up free to save answers and ask your own doubts
Your answer
Log in or create a free account to answer this question.