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The rate of interest charged by the central bank for short term of the cash borrowed by commercial banks is called ______ .A. Repo rateB. Reverse Repo RateC. Bank RateD. Cash Reserve Ratio |
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Answer» Correct Answer - A Repo rate is the rate at which the central bank of a country (RBI in India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. |
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