BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Whenever somebody needs foreign currency against Indian Rupee, banks give equivalent amount of desired currency based on prevalent
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bank rate
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currency rate
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policy rate
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exchange rate
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Explanation:
Detailed explanation-1: -A unified single market-determined exchange rate system based on the demand for and supply of foreign exchange replaced the LERMS effective March 1, 1993. The Reserve Bank’s exchange rate policy focusses on ensuring orderly conditions in the foreign exchange market.
Detailed explanation-2: -The demand for foreign exchange varies inversely with the exchange rate.
Detailed explanation-3: -In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of the euro.
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