The term 'Reverse Repo Rate' is the rate at which: MCQ with Answer and Explanation

The term 'Reverse Repo Rate' is the rate at which:
A. Banks lend to RBI
B. Government borrows from banks
C. RBI lends to banks
D. Banks borrow from the public
Answer: Option A
Solution (By JKSSB Mock Tests)
Reverse Repo Rate is the rate at which the RBI borrows money from commercial banks, absorbing excess liquidity from the system.

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Practice More Economy Set 1 Questions

Question #1
An expansionary fiscal policy consists of:
A. reducing money supply
B. increasing taxes and reducing government expenditure
C. raising the repo rate
D. reducing taxes or increasing government expenditure

Correct Answer: Option D


Explanation:
Expansionary fiscal policy increases aggregate demand through lower taxes or higher government expenditure.

This question belongs to: Economy GK Economy Set 1
Question #2
In oligopoly, the kinked demand curve model was developed by:
A. A.C. Pigou
B. Edward Chamberlin
C. Paul Sweezy
D. Joan Robinson

Correct Answer: Option C


Explanation:
Paul Sweezy developed the kinked demand curve model to explain price rigidity in oligopolistic markets.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Social Reproduction' in feminist economics refers to:
A. Only the reproduction of capital
B. Only market production of goods
C. The activities and processes that maintain and reproduce the labour force on a daily and intergenerational basis, often performed unpaid within households
D. Only biological reproduction without social dimensions

Correct Answer: Option C


Explanation:
Social reproduction encompasses the unpaid and paid activities—care, domestic work, education, health—that reproduce people as social and economic beings on a daily and generational basis.

This question belongs to: Economy GK Economy Set 1