Question

Select the correct statement/s about REPO rates:

1) Rate at which RBI lends commercial banks for securities

2) Banks ensure repurchase of securities

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 and 2

Answer 1

The correct option is C Both 1 and 2

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds, for securities and a repurchase promise at a future date.