The rate of interest charged by the central bank for short term of the cash borrowed by commercial banks is called______ .

The rate of interest charged by the central bank for short term of the

1.	The rate of interest charged by the central bank for short term of the cash borrowed by commercial banks is called______ .
Answer» Repo rate Reverse Repo Rate Bank Rate Cash RESERVE Ratio Solution :Repo rate is the rate at which the central bank of a country (RBI in India) LENDS MONEY to commercial banks in the event of any shortfall of FUNDS. Repo rate is used by monetary AUTHORITIES to control inflation.