BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Deposit Rate
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Base Rate
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Prime Lending Rate
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Bank Rate
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Detailed explanation-1: -Definition: Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers.
Detailed explanation-2: -The Correct Answer is “Reserve Bank of India". The Base Rate is the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. It is the minimum interest rate of a bank below which it is not viable to lend.
Detailed explanation-3: -A base rate is the interest rate that a central bank – such as the Bank of England or Federal Reserve – will charge commercial banks for loans. The base rate is also known as the bank rate or the base interest rate.
Detailed explanation-4: -noun. the rate of pay per unit of time, as by the hour, or per piece, or for work performed at an established standard rate.