According to the Indian Financial System, 'Repo Rate' is the rate at which: MCQ with Answer and Explanation

Question
According to the Indian Financial System, 'Repo Rate' is the rate at which:
A. RBI borrows from commercial banks
B. Commercial banks lend to the public
C. RBI lends short-term funds to commercial banks
D. Banks lend to each other overnight
Answer: Option C
Solution (By JKSSB Mock Tests)
The Repurchase (Repo) rate is the rate at which the RBI lends money to commercial banks to manage short-term liquidity.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
In India, the new 'Income Tax Bill' 2025 aims to:
A. Increase tax rates
B. Replace GST
C. Simplify and consolidate the income tax law
D. Abolish all exemptions
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Correct Answer: Option C

Explanation:
The proposed bill seeks to simplify the language and structure of the Income Tax Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Public Account' of India includes:
A. Grants from foreign governments
B. Borrowings
C. Tax revenues
D. Provident fund, small savings, etc.
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Correct Answer: Option D

Explanation:
Public Account holds money received for specific purposes like provident fund, small savings, etc., not belonging to government.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A debit note is prepared for:
A. Sales returns
B. Credit purchases
C. Credit sales
D. Purchase returns
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Correct Answer: Option D

Explanation:
A debit note is issued to a supplier when goods are returned, indicating that the supplier's account is debited.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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