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प्रश्न
Statement (1): Bank rate is the rate of interest at which Central Bank lends to the commercial banks for long term.
Statement (2): Repo rate is the rate of interest at which Central Bank lends to commercial banks for their short term requirements.
पर्याय
Statement 1 is true, Statement 2 is false.
Statement 2 is true, Statement 1 is false.
Both the statements are true.
Both the statements are false.
MCQ
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उत्तर
Both the statements are true.
Explanation:
Both statements accurately identify the Central Bank’s major monetary policy tools. The bank rate is only used to provide long-term loans to commercial banks with no collateral requirements, whereas Repo Rate is the interest rate levied on short-term loans backed by government assets.
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