Question

______ is the rate at which the central bank borrows from the commercial banks.

Options

• Cash Reserve Ratio

• Reverse repo rate

• Repo rate

• None of the above

Answer 1

The reverse repo rate is the rate at which the central bank borrows from the commercial banks.

Explanation:

The rate at which the central bank borrows from commercial banks is known as the reverse repo rate. It is a monetary policy tool that can be used to control the country's money supply.