Hi
What is Rate,Reverse Repo Rate,Bank Rate. How do u
determine the Price Brand of an IPO How do u fix the Base
Price of the IPO.
Answer Posted / a mukherjee
Repo means Repurchase Agreement.It is same as bank rate but
it comes with a repurchase agreement. Suppose ,RBI wants to
decrease the liquidity in the economy (recent condition as
on 21st march 2010)it will increase the rate.
when RBI is performing the repo it will sell the securities
to the commercial banks with an agreement that it will
purchase in the agreed date .In this same transaction the
commercial bank is performing reverse repo..
Is This Answer Correct ? | 3 Yes | 1 No |
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