BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest below which a bank is not expected to lend to customers is known as____[SBI Bank 2013]
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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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Explanation:
Detailed explanation-1: -The Base Rate is the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI.
Detailed explanation-2: -Base Rate. Base Rate revised as 9.40% p.a. w.e.f. 15.12. 2022.
Detailed explanation-3: -The key difference between bank rate and base rate is that the bank rate is the rate at which the central bank in the country lends money to commercial banks, while base rate is the rate at which the commercial banks lend funds to the public in the form of loans.
There is 1 question to complete.