The repo rate is the interest rate
A)at which commercial banks lend to and borrow from each other.
B)the South African Reserve Bank pays on reserves.
C)the public pays when borrowing from banks.
D)the South African Reserve Bank charges on loans to banks.
E)banks pay on the public's deposits.

Question

Quizplus · Accepted Answer

The repo rate is the interest rate at which the South African Reserve Bank lends money to commercial banks. Therefore, D is the correct choice as it states that the repo rate is the interest rate the South African Reserve Bank charges on loans to banks.

The Repo Rate Is the Interest Rate