When commercial banks have surplus depos

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Home Questions 6GBSFR498A

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

When commercial banks have surplus deposits, they park them with reserve bank of India and earn interests. What is the rate known as?

Options:

Marginal rate

Deposit rate

Reverse repo rate

Repo rate

Correct Answer:

Reverse repo rate

Explanation:

The commercial bank park their surplus funds with RBI and the rate of return which they get is known as reverse repo rate.