The Repo Rate Is the Interest Rate

question 33

Multiple Choice

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.

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Definitions:

Safety Stock

An additional quantity of inventory kept on hand as a buffer against demand fluctuations or supply chain uncertainties.

Lead Time

The amount of time between the initiation and completion of a production process.

Safety Stock

A quantity of inventory kept on hand to protect against fluctuations in demand or supply.

Lead Time

The amount of time that elapses between the initiation of a process and its completion.