Which of the following statement(s) is/are true?
a) Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds
b) Bank rate is a rate at which the Reserve Bank of India (RBI) provides the loan to commercial banks without keeping any security
c) Repo Rate is always higher than the Bank Rate.
1
only a
2
only b
3
a and b
4
b and c
5
None of the above