Question : The minimum rate below which banks are not allowed to lead money except in cases specified by the Reserve Bank of India is called ______.
Option 1: repo rate
Option 2: reverse repo rate
Option 3: cash rate
Option 4: base rate
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Correct Answer: base rate
Solution : The correct answer is the base rate.
The base rate is the lowest interest rate that a bank can offer loans at, except in certain circumstances where the RBI permits it. It is the lowest interest rate at which a bank can make a loan without making a profit.
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Question : _____________is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks of the country.
Option 1: Reserve Repo Rate
Option 2: Base Rate
Option 3: Marginal Rate
Option 4: Repo Rate
Question : What is the meaning of reverse repo rate?
Option 1: The rate at which RBI borrows money from foreign banks.
Option 2: The rate at which RBI borrows money from commercial banks.
Option 3: The rate at which commercial banks borrow money from RBI.
Option 4: The rate at which commercial banks borrow money from foreign banks.
Question : The money supply is governed by the:
Option 1: Planning Commission
Option 2: Finance Commission
Option 3: Reserve Bank of India
Option 4: Commercial banks
Question : The bank rate in the Indian economy is determined by the ________.
Option 1: State Bank of India
Option 2: Reserve Bank of India
Option 3: Finance Ministry of India
Option 4: Securities and Exchange Board of India
Question : Which of the following is the instrument of monetary policy used by RBI?
Option 1: Base rate
Option 2: Call rate
Option 3: Bank rate
Option 4: Discount rate
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