Economics · Monetary Policy
What is the correct definition of 'Repo Rate'?
- 1The statutory rate fixed by the government for overnight inter-bank lending
- 2The rate at which commercial banks park surplus funds with the RBI
- 3The floating interest rate charged by commercial banks to corporate borrowers
- 4The rate at which commercial banks borrow money from the RBI✓
Correct answer
The rate at which commercial banks borrow money from the RBI
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