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Question

The rate at which RBI gives short term loan to commercial banks is called

This question was previously asked in
SSC CGL 2016 (Tier 1) Previous Year Question Paper (11-Sep-2016) (Shift 2)
The correct answer is

Repo rate

The rate at which the RBI gives short term loans to commercial banks is called the Repo rate. It is the rate at which banks can borrow money from the RBI by pledging securities.

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