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WHAT DO U MEAN BY REPO RATE???
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Answer Posted / capt nasir
Whenever the banks have any shortage of funds they can
borrow it from RBI. Repo rate is the rate at which our
banks borrow rupees from RBI. A reduction in the repo rate
will help banks to get money at a cheaper rate. When the
repo rate increases borrowing from RBI becomes more
expensive
| Is This Answer Correct ? | 5 Yes | 4 No |
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