Consider the following Statements: I. Bank rate is the rate of interest which RBI charges its clients on their short- term borrowing. II. Repo rate is the rate of interest which RBI charges its clien…

Question

Consider the following Statements: I. Bank rate is the rate of interest which RBI charges its clients on their short- term borrowing. II. Repo rate is the rate of interest which RBI charges its clients on their long- term borrowing. Which of the statements given above is/are correct?

PYQPulse · Accepted Answer

Neither I nor II

PYQPulse · Answer

Explanation: Understanding Bank Rate and Repo Rate Policies This question assesses the understanding of two key monetary policy tools used by the Reserve Bank of India (RBI): the Bank Rate and the Repo Rate. Let's analyze each statement to determine their correctness. Statement I Analysis: Bank Rate Accuracy Sta

Consider the following Statements: I. Bank rate is the rate of interest which RBI charges its clients on their short- term borrowing. II. Repo rate is the rate of interest which RBI charges its clients on their long- term borrowing. Which of the statements given above is/are correct?

Answer: D. Neither I nor II

Explanation

Consider the following Statements: I. Bank rate is the rate of interest which RBI charges its clients on their short- term borrowing. II. Repo rate is the rate of interest which RBI charges its clients on their long- term borrowing. Which of the statements given above is/are correct?

Answer: D. Neither I nor II

Explanation