Which of the following statements in context of Repo Rate is incorrect ........

Economic Affairs Money Supply and Monetary Policy

Which of the following statements in context of Repo Rate is incorrect?

Repo rates form a part of the liquidity adjustment facility

Repo rate historically in India has always been 1% less than reverse repo rate

Higher Repo rate implies less liquidity in market

The higher the repo rate the lesser the banks will borrow from RBI

2nd statement is incorrect.

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