Question

Consider the following statements
1) The repo rate is the rate at which other banks borrow from the RBI.
2) A value of 1 for Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population.
Which of the statements given above is / are correct ?

• A. Only 1
• B. Only 2
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is C Both 1 and 2

Repo rate is the interest rate charged by RBI on the short-term loans it forwards to its customers (banks being one of it). Gini Coefficient measures the 'income inequality' in an economy.