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

Explanation:

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