Reverse Repo Rate is:

CA Foundation · Business Economics · MTP · September 2025
Reverse Repo Rate is:
(A) A. Rate at which RBI borrows from commercial banks
(B) B. Rate at which RBI lends to the commercial banks
(C) C. Both (a) and (b)
(D) D. Neither (a) nor (b)

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Rate at which RBI borrows from commercial banks

Topics: Money Market

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