ECONOMICS
ECONOMIC INSTITUTIONS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
pay a small amount of interest on money deposited
|
|
|
borrow money from the government
|
|
|
make various types of loans
|
|
|
offer direct deposits
|
Detailed explanation-1: -As the name implies, reverse repo is the inverse contract to the repo rate. The reverse repo rate is the rate at which the RBI borrows funds from the country’s commercial banks. It is the rate where the commercial banks in India park excess funds with the Reserve Bank of India, typically for a short period of time.
Detailed explanation-2: -The Reserve Bank of India, as the central bank of the country, functions as the sole bank with the right of issuing paper notes, it acts as banker to the Government, it is the banker to other bank and it regulates the flow of credit.
Detailed explanation-3: -Detailed Solution. The correct answer is lending money.
Detailed explanation-4: -The correct option is (d) Payday lender.