Reverse repo operation takes place when:

CA Foundation · Business Economics · MTP · September 2026
Reverse repo operation takes place when:
(A) A. RBI borrows money from banks by giving them securities
(B) B. banks borrow money from RBI by giving them securities
(C) C. banks borrow money in the overnight segment of the money market
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. RBI borrows money from banks by giving them securities

Topics: Money Market

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