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Which one among the following is correct about the Repo Rate in the Indian Economy?

A) It is the rate at which banks borrow funds from the RBI.
B) It is the rate at which banks park their funds with the Central Bank.
C) It is the difference in the prices of repurchase of the bills from the original prices.
D) Both 'a' and 'c'.

Correct Answer:




D) Both 'a' and 'c'.

Part of solved Currency Inflation questions and answers : General Knowledge >> Economy >> Currency Inflation

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Similar Questions

1). Consider the following objectives
1. To restrict the expansion of bank credit.
2. To augment the investment of the banks in government securities.
3. To ensure solvency of banks.
Which of the objectives given above are the main objectives of the Statutory Liquidity Requirements (SLRs)?

A). 1 and 2

B). 1 and 3

C). 2 and 3

D). All of these

2). Consider the following statements about Sinking Fund
1. It is a method of repayment of public debt
2. It is created by the government out of budgetary revenues every year.
Which of the statements given above is/are correct?

A). Only 1

B). Only 2

C). Both 1 and 2

D). None of these

3). Consider the following repo options
1. Term repo option refers to a repo with a specified end date in the money market.
2. Overnight repo option has a one-day maturity transaction period in the money market.
3. Open repo option has no end date.
Which of the repo rates given above is/are correct?

A). Only 1

B). 1 and 3

C). 2 and 3

D). All of the above

4). Which one of the following is the type of currency whose value may depreciate rapidly or that is difficult to convert into other currencies?

A). Hard currency

B). Soft currency

C). Flat currency

D). Alternative currency

5). Consider the following roles
1. Bank of issue
2. Controller of credit
3. Supervision to bring sound banking
4. Banker to government
Which of the roles given above are the functions or roles of the Reserve Bank of India?

A). 1 and 2

B). 1 and 3

C). 1, 2 and 4

D). All of these

6). Consider the following statements
1. In India, the Cash Reserve Requirement is between 3 to 15% of the total demand and time deposits of the commercial banks.
2. In India, the Statutory Liquidity Requirement is not less than 25% of the total demand and time deposits of the commercial banks.
Which of the statements given above is/are correct about the General Credit Control measures used by the RBI?

A). Only 1

B). Only 2

C). Both 1 and 2

D). Neither 1 nor 2

7). Consider the following statements
1. The printing of notes is the total management of Reserve Bank of India.
2. The volume of rupee coins and smaller coins are controlled by the Ministry of Finance.
Which of the statements given above is/are correct?

A). Only 1

B). Only 2

C). Both 1 and 2

D). Neither 1 nor 2

8). Consider the following statements
1. During inflation, RBI increases the Cash Reserve Ratio.
2. During deflation, RBI increases the cash Reserve Ratio.
Which of the above statements is/are correct?

A). Only 1

B). Only 2

C). Both 1 and 2

D). None of them

9). Consider the following transactions
1. Payment between Nepal and India.
2. Payment between Bhutan and India.
Which of the payments given above is/are the payments not eligible for settlement though the Asian Clearing Union?

A). Only 1

B). Only 2

C). Both 1 and 2

D). Neither 1 nor 2

10). What are the scheme to reduce interest burden of the State Government in India through gradual conversion of high cost debt into a low cost debt is known as?

A). Debt-swap scheme

B). Debt-write off scheme

C). Grants-in-aid scheme

D). Debt consolidation scheme