Question
EconomyMoney, RBI and InflationMoney Creation, Credit and Monetary TransmissionMedium (editorial estimate)
Question details
- Type:
- Statement based
- Skill:
- Concept understanding
- Tags:
- Money Creation, Credit and Monetary Transmission · What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI?
- Related topics:
- Banking Regulation and Prudential Norms
Classification and difficulty are editorial labels. Explanations are awaiting review.
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What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI? 1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks. Select the correct answer using the code given below.
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Question 43 · Money Creation, Credit and Monetary Transmission · Economy · UPSC Prelims 2016 (GS)