{"id":2385,"date":"2024-03-05T15:31:49","date_gmt":"2024-03-05T15:31:49","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=2385"},"modified":"2024-03-05T15:31:49","modified_gmt":"2024-03-05T15:31:49","slug":"the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/","title":{"rendered":"The interest rate at which the Reserve Bank of India lends to Commercial banks in the short-termto maintain liquidity is known as"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9780c15881d\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Interest rate                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    Repo rate                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Bank rate                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Reverse repo rate                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is (b) Repo rate.<\/p>\n<p>The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks in the short-term. <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> The RBI uses the repo rate to control the money supply in the economy. When the RBI wants to increase the money supply, it lowers the repo rate. This makes it cheaper for banks to borrow money from the RBI, and they can then lend more money to their customers. When the RBI wants to decrease the money <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> supply, it raises the repo rate. This makes it more expensive for banks to borrow money from the RBI, and they will then lend less money to their customers.<\/p>\n<p>The bank rate is the interest rate at which the RBI lends money to commercial banks on a long-term basis. The bank rate is not used as frequently as the repo rate to control the money supply.<\/p>\n<p>The reverse repo rate is the interest rate at which commercial banks lend money to the RBI in the short-term. The reverse repo rate is used by the RBI to absorb excess liquidity from the banking system. When the RBI wants to absorb excess liquidity, it raises the reverse repo rate. This makes it more attractive for banks to lend money to the RBI, and they will then withdraw money from their customers.<\/p>\n<p>I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The interest rate at which the Reserve Bank of India lends to Commercial banks in the short-termto maintain liquidity is known as<\/title>\n<meta name=\"description\" content=\"The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks in the short-term. The RBI uses the repo rate to control the money supply in the economy. When the RBI wants to increase the money supply, it lowers the repo rate. This makes it cheaper for banks to borrow money from the RBI, and they can then lend more money to their customers. When the RBI wants to decrease the money supply, it raises the repo rate. 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When the RBI wants to increase the money supply, it lowers the repo rate. This makes it cheaper for banks to borrow money from the RBI, and they can then lend more money to their customers. When the RBI wants to decrease the money supply, it raises the repo rate. 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The RBI uses the repo rate to control the money supply in the economy. When the RBI wants to increase the money supply, it lowers the repo rate. This makes it cheaper for banks to borrow money from the RBI, and they can then lend more money to their customers. When the RBI wants to decrease the money supply, it raises the repo rate. This makes it more expensive for banks to borrow money from the RBI, and they will then lend less money to their customers.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/","og_locale":"en_US","og_type":"article","og_title":"The interest rate at which the Reserve Bank of India lends to Commercial banks in the short-termto maintain liquidity is known as","og_description":"The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks in the short-term. The RBI uses the repo rate to control the money supply in the economy. When the RBI wants to increase the money supply, it lowers the repo rate. This makes it cheaper for banks to borrow money from the RBI, and they can then lend more money to their customers. When the RBI wants to decrease the money supply, it raises the repo rate. This makes it more expensive for banks to borrow money from the RBI, and they will then lend less money to their customers.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-03-05T15:31:49+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/","name":"The interest rate at which the Reserve Bank of India lends to Commercial banks in the short-termto maintain liquidity is known as","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-03-05T15:31:49+00:00","dateModified":"2024-03-05T15:31:49+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks in the short-term. The RBI uses the repo rate to control the money supply in the economy. When the RBI wants to increase the money supply, it lowers the repo rate. This makes it cheaper for banks to borrow money from the RBI, and they can then lend more money to their customers. When the RBI wants to decrease the money supply, it raises the repo rate. This makes it more expensive for banks to borrow money from the RBI, and they will then lend less money to their customers.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-interest-rate-at-which-the-reserve-bank-of-india-lends-to-commercial-banks-in-the-short-termto-maintain-liquidity-is-known-as\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"The interest rate at which the Reserve Bank of India lends to Commercial banks in the short-termto maintain liquidity is known as"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/2385"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=2385"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/2385\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=2385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=2385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=2385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}