alleryReverse repo rate is the rate at which RBI:
ALends to commercial banks
BBorrows from commercial banks
CLends to NBFCs
DSets the SLR
Answer & Solution
Correct answer: B. Borrows from commercial banks
1. The question asks: Reverse repo rate is the rate at which RBI.
2. Correct answer: Borrows from commercial banks.
3. Reverse repo is RBI absorbing liquidity by borrowing from banks.
_Source: BOI Quick Revision — General Banking & Financial Awareness (2020), Reverse Repo_
Keep practising Monetary Policy
Browse all Monetary Policy questions for IBPS Clerk, or explore more Banking Awareness topics.
Related questions
Match each monetary stance with its macroeconomic condition:Match each Monetary Policy Committee (MPC) parameter with its statutory mandate:Match each standing liquidity facility of RBI with its design purpose:Match each quantitative monetary policy tool with its operational mechanism:Pick the right answer, quicklySpot the one that does not fitOrder an open market saleFill the gaps in the liquidity toolkit