Question

Choose the correct from given options
Repo rate is the rate at which

Options

• commercial banks purchase government securities from the central bank

• commercial banks can take loans from the central bank

• commercial banks can keep their deposits with the central bank

• short-term loans are given by commercial banks

Answer 1

Repo rate is the rate at which commercial banks can take loans from the central bank.
Hence, the correct answer is option commercial banks can take loans from the central bank.