Which among the following in India can use ‘Repo Bonds’ to raise short term money from markets? 1. Commercial Bank 2. Regional Bank 3. Corporate 4. Governments Select the above correct statements.
Answer: C
When reference is made to the Indian interest rate this often refers to the repo rate, also called the key short term lending rate. Please note that government doesn’t raise money for short term using Repo Bonds. The banks, corporate bonds with each other to raise pledging government securities with RBI to raise short term money.