GyanGramQuestion
The lowering of Bank Rate by the Reserve Bank of India leads to -
PRELIMS 2011 · INDIAN ECONOMY
The lowering of Bank Rate by the Reserve Bank of India leads to -
Attempt this previous-year question. The correct option stays hidden until you choose.
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• Correct Answer: A
• Lower Bank Rate reduces the cost of borrowing for commercial banks from the RBI.
• Cheaper credit encourages lending, injecting liquidity into the market.
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