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Match List - I with List - II.

List - I (Banking)List - II (Function)
(A) Commercial Bank(I) Long term lending rate by RBI
(B) Reserve Bank of India(II) Short term lending rate by RBI
(C) Bank Rate(III) Credit creation
(D) Repo Rate(IV) Lender of last resort

Choose the correct answer from the options given below :

Solution

Correct Option: 2

Commercial Bank performs credit creation (III). RBI is lender of last resort (IV). Bank Rate is the long term lending rate of RBI (I). Repo Rate is the short term lending rate of RBI (II). So A-III, B-IV, C-I, D-II.

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