Economics · Monetary Policy
Which among the following defines Reverse Repo Rate?
- 1The rate at which commercial banks park their surplus funds with the RBI✓
- 2The rate at which banks can borrow against their excess SLR securities to meet additional liquidity requirements
- 3The rate at which the Reserve Bank is prepared to buy or re-discount bills of exchange or other commercial paper
- 4The rate at which commercial banks borrow funds from the Reserve Bank against eligible collaterals
Correct answer
The rate at which commercial banks park their surplus funds with the RBI
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