Question

Given below are two statements:
Statement I: Repo rate is the rate, at which RBI lends short-term money to the banks against security.
Statement II: Reverse repo rate is always 100 base point, 1% less than Repo rate.
In the light of the above statements, choose the most appropriate answer from the options given below:

• A. Both Statement I and Statement II are correct
• B. Both Statement I and Statement II are incorrect
• C. Statement I is correct but Statement II is incorrect
• D. Statement I is incorrect but Statement II is correct

Answer 1

The Correct Option is C

The correct option is(C): Statement I is correct but Statement II is incorrect