Which of the following statements is true about Reverse Repo Rate?
- Inflation is controlled by RBI by decreasing the reverse repo rate
- When the reverse repo rate is increased banks deposit their surplus funds with RBI in order to gain interest
- It is the rate at which the Reserve Bank of India lends money to the commercial banks within the country
1
Only 1
2
Only 2
3
Only 3
4
Both 1 and 3
5
Both 1 and 2