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Answer Posted / sandeep singh

THE RATE AT WHICH RBI REPURCHASES GOURNMENT SECURITIES FROM
BANKS. IN RETUREN, BANKS GET CASH TO MEET THEIR SHORT TERM
REQUIRMENTS. WHEN RBI WANTS TO INCREASE LIQUDITY IN THE
SYTEM,IT REDUCES THE REPO RATE.

BY_
SANDEEP SINGH
UNIVERSITY OF ALLAHABAD
E-MAILID
1-sandip.au2008@gmail.com
2- sandip.au2005@radiff.com

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