MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Central Bank

Q. Consider t...

Question

Q. Consider the following statements with respect to Repo Rate:
Which of the statements given above is/are correct?

A

1 only

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

2 only

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Both 1 and 2

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Neither 1 nor 2

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Neither 1 nor 2
Explanation:

Statement 1 is incorrect: Repo rate is the rate at which commercial banks borrow money from the RBI for short term in lieu of securities.

Statement 2 is incorrect: Repo rate is decided by the Monetary Policy Committee (MPC) headed by the RBI Governor.

Suggest Corrections

thumbs-up

1

Similar questions

Q. Consider the following statements:
1) Liquidity Adjustment Facility operations help the RBI effectively transmit Interest rate signals to the market.
2) Under the repo or repurchase option, banks borrow money from the RBI via the sale of securities with an agreement to purchase the securities back at a fixed rate at a future date.
Which of the statement(s) given above is/are correct?

Q. 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 ?

Q. Select the correct statement/s about REPO rates:

1) Rate at which RBI lends commercial banks for securities

2) Banks ensure repurchase of securities

Q.  Repo rate or repurchase rate is referred to as the rate at which the central bank (RBI) lends money to the commercial banks for meeting short-term fund requirements in order to maintain liquidity

Q. When the RBI __________ the repo rate, the commercial banks in turn ___________ the rate of interest on loans for the public.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Central Bank

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon