Repo Rate- Rate at which money is lent by RBI to Commercial Banks

Q.  Which of the following is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds?
- Published on 20 Jul 15

a. Benchmark Prime Lending Rate
b. Annual Percentage Rate
c. Bank Rate
d. Repo Rate

ANSWER: Repo Rate
If Repo rate increases it becomes expensive to borrow money from RBI and vice versa.

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