Question

An increase in the Bank Rate generally indicates that

Q: Answer-An increase in the Bank Rate generally indicates that the :

A tight monetary policy is a course of action undertaken by Central bank to constrict spending in an economy, or to curb inflation when it is rising too fast. The increased bank rate increases the cost of borrowing and effectively reduces its attractiveness.

the :

A market rate of interest is likely to fall

B Central Bank is no longer making loans to commercial banks

C Central Bank is following an easy money policy

D Central Bank is following a tight money policy

E None of the above

Practice Next

More Alternate Sources of Finance Questions

Personal and business property coverage combining several types of property insurance in one policy is called?
The 'Third-Party Liability' cover in a motor insurance policy is mandatory in India as per the:
In which year General Insurance Corporation of India ( GIC ) notified as the Indian Reinsurer?
The central office of the Life Insurance Corporation of India (LIC) is located at?
Which type of policy is offered by an insurer for covering jewellery?
The fixed income that one gets after the retirement is also known as ________.
What is NOT an element of an insurance contract?
Consider the following statement:

I. Section 25 of IRDAI Act, 1999 lays down for establishment of Insurance Advisory Committee.

II. I...
The primary categories of insurance business in India are:
A policy that covers the cost of repairing or replacing damaged plant and machinery during construction or erection is:

An increase in the Bank Rate generally indicates that

Solution