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Q:

The rate at which the central bank of any country borrows money from the commercial banks within its own territories is called:

  • 1
    Primary Lending Rate
  • 2
    Reverse Repo Rate
  • 3
    Repo Rate
  • 4
    Secondary Lending Rate
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Answer : 2. "Reverse Repo Rate"
Explanation :

The reverse repo rate is the rate at which the Reserve Bank of India borrows funds from commercial banks in the country. It is the rate at which commercial banks in India park their excess money with the Reserve Bank of India, usually for the short term.

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