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Repo Full Form: A lot of competitive exams have Economics as their core subject. However, the subject is feared by the aspirants for it seems difficult to grasp. But all that is required is good guidance and a good preparation strategy to ace this subject. Today in this article we are going to provide you with insights on one such concept that is an integral part of Economics, the Repo Full Form.

This article will not only provide you with the Full form but also help you understand this concept better! So go ahead and give this a read!

Repo Full Form: Know the Full Form and Learn about this Concept

If you are appearing for any competitive exam, especially a banking exam, the concept of Repo is going to play an important role. The Repo stands for ‘Repurchasing Option’ and is often referred to as the ‘Repurchasing Agreement’. The repo rate as it is called is the rate at which banks borrow money from the RBI by selling their surplus government securities to RBI. Later, the banks can repurchase these securities from RBI when they repay the loan, which is why the rate is referred to as the Repurchasing Option”

The Repo rate helps the commercial banks maintain liquidity, in case of a shortage of funds. Also, the Repo Rate is one of the most important tools of RBI to stay inflation in check. The Reserve Bank of India keeps changing the repo rates depending on macroeconomic factors. The change in these rates has a direct impact on the economy and also various ripple effects. 

Key Takeaways

We hope that our article was informative and useful. Learning the basics of economics is easier, especially when you have the right guidance with you.

For more knowledge about full forms, you can click on the links below – 

IPA Full-Form ATP Full Form in Biology
CTI Full Form In ITIBDC Full-Form

Repo Full Form – FAQs

What is Repo Full Form?

The full form of Repo is “Repurchasing Option”

What is the concept of Repo in Economics?

The repo rate as it is called is the rate at which banks borrow money from the RBI by selling their surplus government securities to RBI.

What is Repurchasing Option also known as?

The Repurchasing Option is also known as the ‘Repurchasing Agreement’.

Is it important to know Repo Full form?

Yes, the full form of RPC plays a key role and is an important concept in economics because the changes in the repo rates have a direct impact on the economy.

Who determines the Repo Rate?

The Repo rate is determined by the Reserve Bank of India depending on macroeconomic factors.

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