Economics · Monetary Policy

Which of the following statements is FALSE regarding the REPO Rate of RBI?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The repo rate is a key policy rate used by RBI to control inflation and money supply.
2Repo rate is the rate at which commercial banks park their surplus funds with RBI.✓
3The repo rate is changed by the Monetary Policy Committee (MPC) of RBI.
4Repo rate is also known as Repurchase Agreement or Repurchase Option.

Correct answer

Repo rate is the rate at which commercial banks park their surplus funds with RBI.

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