How Bank Rate is different from Repo rate?

How Bank Rate is different from Repo rate?
[A]While Repo Rate is a short-term measure, Bank Rate is a long-term measure
[B]While Bank Rate is a short-term measure, Repo Rate is a long-term measure
[C]While Repo Rate is used to control money supply, Bank Rate is used to control inflation
[D]While Bank Rate is used to control money supply, Repo Rate is used to finance government debt

While Repo Rate is a short-term measure, Bank Rate is a long-term measure
Bank Rate and Repo Rate seem to be similar terms because in both of them RBI lends to the banks. Repo Rate is a short-term measure and it refers to short-term loans and used for controlling the amount of money in the market. On the other hand, Bank Rate is a long-term measure and is governed by the long-term monetary policies of the RBI.

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This question "How Bank Rate is different from Repo rate?" was published on GKToday on May 19, 2015 at 12:49 pm. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

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