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Examveda

Which of the following organization decides Repo Rate?

A. SEBI

B. IMF

C. AMFI

D. RBI

Answer: Option D

Solution(By Examveda Team)

RBI decides Repo Rate. Repo rate is the rate at which RBI lends to its clients generally against government securities. Reduction in repo rate helps the commercial banks to get money at a cheaper rate and increase in repo rate discourages the commercial banks to get money as the rate increases and becomes expensive.

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Related Questions on Insurance

Which one of the following is correct?

A. Under Defined Benefit scheme, pension paid was linked to investment performance of fund

B. Under Defined Contribution scheme, pension paid was not linked to investment performance of the fund

C. Both A & B

D. None of the above