The 'Reverse repo rate' is the rate at which RBI: MCQ with Answer and Explanation

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The 'Reverse repo rate' is the rate at which RBI:

A. rediscounts bills

B. lends to banks

C. lends to the government

D. borrows from banks against government securities

Answer: Option D

Solution (By JKSSB Mock Tests)

Reverse repo is the rate at which RBI borrows from banks against government securities.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'Reserve Bank of India' was established on:

A. 1 January 1935

B. 1 April 1935

C. 1 April 1934

D. 1 July 1934

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Correct Answer: Option B

Explanation:
The RBI was established on 1 April 1935.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Comptroller and Auditor General' of India submits audit reports to:

A. Finance Minister

B. Prime Minister

C. President

D. RBI Governor

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Correct Answer: Option C

Explanation:
CAG submits audit reports to the President or Governor.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Opportunity Cost' is best illustrated by:

A. The difference between total revenue and total cost

B. The value of the next best alternative forgone when a choice is made

C. The total cost of production

D. The cost of producing one more unit

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Correct Answer: Option B

Explanation:
Opportunity cost is the value of the best alternative that is sacrificed when a decision is made; it is fundamental to the study of choice under scarcity.

This question belongs to: Economy GK Economy Set 1

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