1
Question
A commercial bank X borrows from its country's central bank. What is the rate of interest called in this case?
A commercial bank X borrows from its country's central bank. What is the rate of interest called in this case?
Open in App
Solution
The correct option is C Repo rate
The Reserve Bank of India controls the rate of interest on loans and savings by controling the interest rate at which commercial banks borrow from the RBI. This rate of interest at which the commercial banks borrow money from the RBI is called the repo rate.
The Reserve Bank of India controls the rate of interest on loans and savings by controling the interest rate at which commercial banks borrow from the RBI. This rate of interest at which the commercial banks borrow money from the RBI is called the repo rate.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
