Question

what is inflation, repo rate and reverse rate?

Answer 1

inflation =bank rate is increase, which further increase the rate of interest it makes the credit costlier, demand for credit reduce, less money goes to economy.
repo rate= when commercial bank are in need of fund for short periods, they can borrow from central bank.tje rate of interest charged by the Central Bank on such lending is called repo rate.
reverse rate = when the commercial banks have surplus fund they can deposit the same with the Central Bank and earn money. the rate of interest paid by Central Bank to commercial bank on such deposit is called reserve rate