At which of the following rates does the Central Bank lend to banks against government securities?

Repo Rate

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Reverse Repo Rate

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Bank Rate

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SLR

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Solution

The correct option is A Repo Rate
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.
It does not deal with government securities.

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