WBCS.LIVE practice question

In India the Repo rate is announced by

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. the Ministry of Finance, Government of India
  2. the Prime Minister of India
  3. the Reserve Bank of India
  4. the President of India

Correct answer and explanation

Correct answer: the Reserve Bank of India

Explanation: āœ… Correct Answer: C) the Reserve Bank of India šŸ“š Explanation: The Repo Rate is the rate at which the Reserve Bank of India (RBI) lends money to commercial banks. It is a key tool used by the RBI to control inflation and liquidity in the economy. Changes in the repo rate usually lead to changes in the interest rates offered by banks to the public.