GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bank Rate
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Overnight Rate
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Monetary Policy
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Discount Window
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Detailed explanation-1: -Such loans are given out either by direct lending or by rediscounting (buying back) the bills of commercial banks and treasury bills. Thus, bank rate is also known as discount rate.
Detailed explanation-2: -The rate at which the RBI lends money to commercial banks is called Repo rate.
Detailed explanation-3: -3. Which among the following is the act of taking on a risk for a fee? Underwriting is provided by a bank, insurer or investment house.
Detailed explanation-4: -What make the RBI-commercial bank relationship a key factor in the economy is that the RBI is the regulator and supervisor of the commercial banking system. RBI’s monetary policy has an objective called financial stability which ensures that banks should be healthy and capable of withstanding crisis.