Securities sold by the Central Bank with a clear specification of repurchase date and price is called?

Correct option is D

The correct answer is (D) Reverse repo.

• Securities sold by the Central Bank with a clear specification of repurchase date and price is called Reverse repo.
  

Information Booster:

• Repo Rate:  The repo rate (Repurchase Rate) is the rate at which the central bank of a country, such as the Reserve Bank of India (RBI), lends short-term funds to commercial banks in exchange for securities. It is a key monetary policy tool used to control inflation, liquidity, and the overall economy. When the repo rate is increased, borrowing becomes costlier, reducing inflation, while a decrease in the repo rate encourages borrowing and stimulates economic growth.
• Intrest Rate Swap: An Interest Rate Swap (IRS) is a financial contract where two parties exchange future interest rate payments. Typically, one party pays a fixed rate, while the other pays a floating rate, usually linked to a benchmark like LIBOR. The purpose is to hedge against interest rate fluctuations or to take advantage of changes in rates. It helps organizations manage exposure to interest rate movements or speculate on future rate changes.
• Overnight Market Operation:  Overnight Market Operations refer to short-term borrowing and lending activities conducted by central banks or financial institutions, typically overnight. These operations help manage liquidity in the financial system, stabilize interest rates, and ensure smooth functioning of markets. They often involve repurchase agreements (repos) or reverse repos, where securities are exchanged for funds, and the transaction is reversed the next day. Central banks, like the Federal Reserve or RBI, use these tools to implement monetary policy and manage short-term interest rates.