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Doctors Medicines MCQs Q&A

  1. Rate at which commercial bank buy from the open market
  2. Rate at which Central bank lends from commercial bank
  3. Rate at which central bank grants loan to the commercial bank
  4. Rate at which commercial bank gives loan to the customer
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Option 2 : Rate at which Central bank lends from commercial bank

Reverse repo rate is the tool of the central bank which it uses to regulate money Supply in the market. It is opposite of repo rate where central bank gives loan to the commercial bank at certain to ensure latter’s short term credit need.

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