what is the difference between bank rate and repo rate?
- 10 Answers
- 12345 Views
- I also Faced
- E-Mail Answers
Answer Posted / encyclopedia
Both are basically the same. The Bank rate is the rate at
which commercial banks, which are temporarily short of
cash, can borrow from the Central Bank.The repo rate
enables holders of Securities, principally commercial
banks, to acquire funds from the Central Bank by selling
the securities and at the same time agreeing to repurchase
them at a later date at a predetermined price.
Increases in these rates indicate a desire for a
contraction in credit while decreases reflect a relaxation
of interest rate policy.
| Is This Answer Correct ? | 17 Yes | 5 No |
Post New Answer View All Answers
How Does An Expense Affect The Balance Sheet?
How can the inflation be measured?
What percent of revenue is contributed for CSR by the MNCs
how to make a best portflio and its compartive each other and why chosen the different different portfoili. explain with examples?
What is Share Certificate?
List Some Features Of Pff?
Do you know headquarters of some Indian Government Banks?
Who Are Resident But Not Ordinary Resident?
Explain in Tally ERP 9, how you can view profit and loss statement?
How will you define growth and development?
What Is Debt-to-income Ratio?
What is Base Rate?
How Is The Single Supervisory Mechanism Organised?
Name some of the PM Social Security Schemes?
Why do you want to join the banking sector?
