2022
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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30 basis points
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45 basis points
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40 basis points
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35 basis points
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Detailed explanation-1: -Basis points (BPS) are used to show the change in the value or rate of a financial instrument, such as 1% change equals a change of 100 basis points and 0.01% change equals one basis point.
Detailed explanation-2: -RBI Repo Rate Hike: The Reserve Bank of India (RBI) recently hiked the repo rate by 35 bps, the fifth such increase in 2022.
Detailed explanation-3: -Reserve Bank of India (RBI), the central banking institution of India controls the monetary policy of the Indian currency. The key repo rate has been hiked on 7 December 2022 by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) by 35 basis point to 6.25%.
Detailed explanation-4: -The rate of interest charged by the central bank on the cash borrowed by commercial banks is called the “Repo Rate”. For example: If the Repo Rate is 10% and the loan amount borrowed by a commercial bank from RBI is Rs 10,000, then the interest paid to the RBI will be Rs 1,000.