The rate at which the Reserve Bank of India lends money to commercial banks is called
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The rate at which the Reserve Bank of India lends money to commercial banks is called
✓ Correct answer: c) Repo Rate
ExplanationThe rate at which the Reserve Bank of India (RBI) lends money to commercial banks is called the "Repo Rate." Repo stands for Repurchase Agreement.The Repo Rate is the interest rate at which the RBI provides short-term loans to commercial banks by purchasing government securities or other eligible securities from them.It is a crucial tool used by the central bank to regulate liquidity, inflation, and credit conditions in the economy.Hence, the correct answer is option (C).
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