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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


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

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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