Quiz 553: General Socio-Economic Awareness for Bank Exams
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HIM
Hello sir.
I’ve some doubt in the question no. 5.
How can the increase in the ‘Reverse Repo Rate’ can cause an increase in the interest rates of banks, because a ‘Reverse repo Rate’ is the rate at which the central bank borrows short term loans from banks.So if this rate is increased , then the money with the commercial banks should increase, same way their interest rates should decrase.
Please help me out of this confusion. Many thanks.
Himanshu R.