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Answer : 1. "To regulate the money supply in the market and to combat price inflation."
What is the primary objective of the repo rate?
5Q:
What is the primary objective of the repo rate?
- 1To regulate the money supply in the market and to combat price inflation.true
- 2To determine operating bank rates.false
- 3Increasing availability of funds for banks.false
- 4Stimulating consumer demand.false
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Answer : 1. "To regulate the money supply in the market and to combat price inflation."
Explanation :
Repo rate is the interest rate at which banks borrow funds from the RBI to address short-term liquidity gaps.