Question

Given below are two statements:
• [Statement (I):] Agricultural credit review committee, 1989 was set up by RBI under the chairmanship of A.M Khusro. 
• [Statement (II):] Repo rate is the rate at which RBI borrows money from banks. 
In 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.

Hint:

To distinguish between central bank interest rates:
- Repo Rate: RBI lends to commercial banks (controls inflation).
- Reverse Repo Rate: RBI borrows from commercial banks (absorbs excess liquidity).

Answer 1

The Correct Option is C