Question

which is the process of buying and selling of various assets by the RBI is known as
moral suasion
open market operations
repo rate
Bank rate
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Answer 1

Answer:

Reverse Repo Rate is a mechanism to absorb the liquidity in the market, thus restricting the borrowing power of investors. Reverse Repo Rate is when the RBI borrows money from banks when there is excess liquidity in the market. The banks benefit out of it by receiving interest for their holdings with the central bank.

Explanation:

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