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what is repo rate?
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Answer Posted / davinder
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.
Increase in the rate indicates a desire for a contraction in
credit while decrease reflect a relaxation of interest rate
policy.
| Is This Answer Correct ? | 3 Yes | 0 No |
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