UPSC Civil Services Prelims 2012
Question 18 of 66Indian Economy
Which of the following best describes ‘reverse repo rate’?
AThe rate at which the RBI borrows short-term funds from banks
BThe rate at which banks lend to the RBI for long periods
CThe rate charged on housing loans
DThe interest rate on export credit
Correct Answer
The correct answer is hidden
Explanation
22 words hidden ... liquidity from the banking system. It is part of the liquidity adjustment framework and helps the central bank manage ... 19 words hidden