BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a rate at which RBI sell government securities to banks
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It is a rate at which RBI buys government securities from banks
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It is a rate at which RBI allows small loans in the market
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It is a rate which is offered by Banks to their most valued customers or prime customers
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Detailed explanation-1: -What is the Current Repo Rate? Repo Rate (RR) is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks or financial institutions in India against government securities. The current Repo Rate 2022 is at 4.40%. Changes in Repo Rate affect the flow of money in the market.
Detailed explanation-2: -Repo rate is the rate at which RBI buy government securities from banks. .
Detailed explanation-3: -Definition: Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
Detailed explanation-4: -Answer: C. Q2. What is Repo Rate? a) Rate at which RBI allows temporary loan facilities to commercial banks against government securities only on the condition that the bank will repurchase the securities within a short period.