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Question
Which is the single policy rate to unambiguously signal the stance of monetary policy as recently recommended by RBI?
Options
PLR
Repo
Bank
CLR
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Solution
Repo
Explanation: Reserve Bank of India working group has proposed that the Repo Rate —the rate at which banks borrow money from the RBI be made the single policy rate to signal the monetary policy stance and effectively deal with inflation without hurting growth.
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