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UPSC CSE Prelims Monetary Policy Tools Flashcards

Master 12 monetary policy tools concepts for the UPSC CSE Prelims.

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Question

Consider the following statements regarding the Repo Rate:

  1. It is the rate at which the RBI lends short-term money to commercial banks.
  2. Banks are not required to provide any collateral to borrow under this window.

Which of the statements given above is/are correct?

Question

In the context of the Indian economy, what is the primary purpose of the RBI raising the Reverse Repo Rate?

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