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Reverse 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_
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