Macro

Money & Banking

Medium

Select the option which correctly describe the feature of Reverse Repurchase Agreement.

It is the rate at which RBI provides long term loans to commercial banks.

Purchase of securities through an agreement.

Sale of securities through an agreement.

Purchase of securities in open market.

✅ Correct Option: 3

Under a reverse repurchase agreement the RBI borrows from commercial banks by selling them securities with a commitment to repurchase them later at a fixed price. From the RBI's side it is thus a sale of securities through an agreement, used to absorb excess liquidity from the banking system.

2026: 11 May Shift 2

"In India every currency note bears on its face a promise from the Governor of the Reserve Bank of India(RBI) that if someone produces the note to RBI, or any other commercial bank, the RBI will be responsible for giving the person purchasing power equal to the value printed on the note. The same is also true of coins."

These currency notes and coins are also known by which of the following type of money.

2025: 31 May Shift 1

Arrange the following in chronological order.

(A) Barter System

(B) Currency notes

(D) Online transfer of money.

Choose the correct answer from the options given below:

(A), (B), (C), (D)
(A), (C), (B), (D)
(B), (A), (D), (C)
(C), (B), (D), (A)

2025: 2 June Shift 1

Which of the following is not a monetary measure adopted by Reserve Bank of India?

2022: 19 July Shift 2

Buying and selling of government securities by the Reserve Bank of India to the public is called :

2025: 26 May Shift 2

Which of the following is a quantitative tool of credit control by the reserve bank of India?

2025: 13 May Shift 1

Money deposited in the banks are considered ______________ of the banks.

Select the option which correctly describe the feature of Reverse Repurchase Agreement.

Solution

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