Q1. What is a Repo Rate?
Ans: Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI.
Q2. What is Reverse Repo Rate?
Ans: This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system.
Q3. What is CRR Cash Reserve Ratio Rate?
Ans: CRR is the amount of funds that the banks have to keep with RBI.
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