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:

Repo rate: RBI lends to banks; Reverse repo rate: RBI borrows from banks. Khusro led the 1989 Agricultural Credit Committee.

Answer 1

The Correct Option is C

Step 1: Statement (I): Agricultural Credit Review Committee, 1989, chaired by A.M. Khusro, a verified fact, so (I) is correct.
Step 2: Statement (II): claims RBI borrows from banks via repo rate.
Step 3: Repo rate is actually the rate at which RBI lends to banks; RBI borrowing from banks is called the reverse repo rate, so (II) is incorrect.
Step 4: (I) correct, (II) incorrect, so the correct option is (3).