Question : Match List-I with List-II:
|
List-I |
List-II |
|
(A) Bank Rate |
(I) Securities are pledged in order to repurchase |
|
(B) Marginal Standing Facility |
(II) Minimum rate at which funds are provided for long term |
|
(C) Repo Rate |
(III) Also known as Penal Interest Rate |
|
(D) Reverse Repo Rate |
(IV) Central Bank borrows funds from commercial banks |
Choose the correct answer from the options given below:
Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
Option 2: (A) - (II), (B) - (III), (C) - (I), (D) - (IV)
Option 3: (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Correct Answer: (A) - (II), (B) - (III), (C) - (I), (D) - (IV)
Solution : The interest rate that a central bank charges on loans to commercial banks is known as the bank rate. When banks have used up all of their available borrowing assistance, they can borrow money at the punitive rate known as the Marginal Standing Facility from the RBI. The interest rate at which the central bank of a country loans money to commercial banks is known as the repo rate. The interest rate at which the central bank—the RBI in India—borrows funds from commercial banks for a brief period of time is known as the reverse repo rate. (A)-(II), (B)-(III), (C)-(I), (D)-(IV)
Related Questions
Question : Match List
Question : Match
Question :
Match List-I
Question : Match List
Question :
Match List-I
Trending Articles/News
