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JAMB Commerce 2025 Objective — Question 35

Question 35 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2025 Objective paper, with the correct answer and a full explanation.

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Repo Rate means?

  • A. Rate offered by banks to their premium customers
  • B. Rate at which CBN offers loan facilities to commercial banks against government securities, with the condition that banks need to repurchase the securities in a short period
  • C. Banks having excess cash can buy securities from CBN with a condition of reselling securities to CBN on a prefixed day and priceCorrect
  • D. Banks can discount bills of exchange and avail loan from CBN at times when cash is needed

Explanation

Repo rate, also known as repurchase rate, is the rate at which banks expect to resell securities bought from the CBN.

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