Which of the following is used as a primary means of implementing the monetary policy of the Reserve Bank of India?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Repo rate.
- 'REPO' stands for 'Repurchasing Option' Rate.
- Repo rate is the interest rate at which RBI give loan to the commercial bank.
- A rise in repo rate increases the rate of interest on all types of loans such as Personal Loans, Business Loans, Car Loans, Home Loans, etc.