The RBI can influence money supply by changing __________ at which it gives loan to the commercial Banks. Option 1: Promissory Rate Option 2: Lending Rate Option 3: Fixed Rate Option 4: Bank Rate

The answer is 'Bank Rate'. View full solution:

CUET Economics - The RBI can influence money supply by changing __________ at which it gives loan to the commercial Banks. | PYQs + Solutions

CUET Economics

Macro

Easy

Promissory Rate

Lending Rate

Fixed Rate

Bank Rate

✅ Correct Option: 4

Related questions:

31 May Shift 1

Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation?

20,000
50,000
10,000
5000

31 May Shift 1

Why does central bank is called the lender of last resort?

It lends money to the government to finance its budget deficit.
Central bank lends money to trade and industry to support their export operations.
When a country runs out of money, the central bank prints more money.
Central bank lends money to banks at all times.

29 May Shift 2

Suppose, in a hypothetical economy, the cash reserve ratio is 20% and initial deposits are Rs.100. The value of money which a bank can use to give as a loan in the first round would be

CUET Economics PYQs

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