Solved UPSC CDS/OTA Question
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Q · RBI and Its PoliciesMedium · 45s
Which of the following is/are true about Repo Rate? 1. It is the rate at which the RBI lends to commercial banks. 2. An increase in the repo rate usually reduces borrowing by banks.
TopicRBI and Its Policies
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
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Both statements are correct. Higher repo rates make borrowing costlier and discourage loans.
Final Answer: Option C — Both 1 and 2