The Reverse repo rate is:

CA Foundation · Business Economics · MTP · January 2026
The Reverse repo rate is:
(A) A. RBI borrows from the government
(B) B. Commercial banks lend money to RBI
(C) C. Commercial banks rediscount the bills of exchange with RBI
(D) D. RBI lends money to commercial banks

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. RBI lends money to commercial banks

Topics: Money Market

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