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Question

Verbal Reasoning Question on Statements and Inferences

Given below are two statements :
Statement I: Repo rate is the rate of interest at which Commercial Banks borrow the funds from RBI. Statement II:
Reverse Repo rate is the rate of interest that commercial banks get when they lend funds to RBI.
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 incorrect

C

Statement I is correct but Statement II is incorrect

D

Statement I is incorrect but Statement H is correct

Answer

Both Statement I and Statement II are correct

Explanation

Solution

The correct answer is (A) : Both Statement I and Statement II are correct.