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


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Bank rate


Solution : The correct option is the Bank rate .

The monetary policy instrument used by the Reserve Bank of India (RBI) is the bank rate. It is the rate at which the RBI lends money to commercial banks, influencing overall economic interest rates—changes in the bank rate impact borrowing costs, credit availability, and economic activity.

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