10:[["$","title","0",{"children":"CUET Economics - Repo Rate is the rate at which. | PYQs + Solutions | AfterBoards"}],["$","meta","1",{"name":"description","content":"undefined Option 1 -> This refers to open market operations, not specifically the repo rate mechanism. Option 2 -> Repo Rate is the rate at which commercial banks borrow from the central bank by selling securities with an agreement to repurchase. Option 3 -> This refers to the Reverse Repo Rate, where banks park their surplus funds with the central bank. Option 4 -> This describes >=neral <=nding by commercial banks, not the repo rate mechanism.

Hence, Option 2: Commercial banks can take loans from the central bank -> The Repo Rate (Repurchase Rate) is the interest rate at which the central bank <=nds money to commercial banks against government securities. Banks sell securities to the central bank with an agreement to repurchase them at a future date. It is a key monetary policy tool used to control liquidity and inflation in the economy. When repo rate increases, borrowing becomes expensive, reducing money supply, and vice versa. -> correct"}],["$","link","2",{"rel":"manifest","href":"https://www.afterboards.in/manifest.json","crossOrigin":"$undefined"}],["$","meta","3",{"name":"keywords","content":"CUETECO,ECO,Macro,Money & Banking"}],["$","meta","4",{"name":"robots","content":"index, follow"}],["$","meta","5",{"name":"category","content":"education"}],["$","meta","6",{"name":"google-site-verification","content":"google"}],["$","meta","7",{"property":"og:title","content":"CUET Economics - Repo Rate is the rate at which. | PYQs + Solutions"}],["$","meta","8",{"property":"og:description","content":"undefined Option 1 -> This refers to open market operations, not specifically the repo rate mechanism. Option 2 -> Repo Rate is the rate at which commercial banks borrow from the central bank by selling securities with an agreement to repurchase. Option 3 -> This refers to the Reverse Repo Rate, where banks park their surplus funds with the central bank. Option 4 -> This describes >=neral <=nding by commercial banks, not the repo rate mechanism.

Hence, Option 2: Commercial banks can take loans from the central bank -> The Repo Rate (Repurchase Rate) is the interest rate at which the central bank <=nds money to commercial banks against government securities. Banks sell securities to the central bank with an agreement to repurchase them at a future date. It is a key monetary policy tool used to control liquidity and inflation in the economy. When repo rate increases, borrowing becomes expensive, reducing money supply, and vice versa. -> correct"}],["$","meta","9",{"property":"og:url","content":"https://www.afterboards.in/past-year-questions/cuet-economics/2025/slot-18/45"}],["$","meta","10",{"property":"og:site_name","content":"AfterBoards | CUET Economics Preparation"}],["$","meta","11",{"property":"og:image","content":"https://www.afterboards.in/pyp/AfterBoards%20CUET%20Past%20Year%20Papers%20with%20Solutions.webp"}],["$","meta","12",{"property":"og:type","content":"website"}],["$","meta","13",{"name":"twitter:card","content":"summary_large_image"}],["$","meta","14",{"name":"twitter:site","content":"afterboards.in"}],["$","meta","15",{"name":"twitter:title","content":"CUET Economics - Repo Rate is the rate at which. | PYQs + Solutions"}],["$","meta","16",{"name":"twitter:description","content":"undefined Option 1 -> This refers to open market operations, not specifically the repo rate mechanism. Option 2 -> Repo Rate is the rate at which commercial banks borrow from the central bank by selling securities with an agreement to repurchase. Option 3 -> This refers to the Reverse Repo Rate, where banks park their surplus funds with the central bank. Option 4 -> This describes >=neral <=nding by commercial banks, not the repo rate mechanism.

CUET Economics 2025 2 June Shift 1 PYQs

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