The rate at which the RBI gives loans to commercial banks is called the:
ARepo Rate
BCall Rate
CBase Rate
DBank Rate
Answer & Solution
Correct answer: D. Bank Rate
1. Raising it makes bank borrowing costlier.
2. This is the Bank Rate.
3. A higher bank rate cuts money supply.
_Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._
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