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what is repo and revers repo ?why they need to use in stock
market ?

Question Posted / maruthi


what is repo and revers repo ?why they need to use in stock market ?..

Answer / ujjal das, vsbm

Repo rate is the rate at which Central bank(RBI) lends
money to other
commercial banks.



and Reverse repo rate as the name suggests is the Rate at
which RBI borrows from other commercial banks.

They are useful to know the position of liquidity in the
market.Therefore there will be an ithe mind of the
investors towards investment.

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