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      Question

      What is the interest rate earned by banks for their

      contribution to RIDF and other funds if their PSL shortfall is 8% below the target?
      A Bank Rate minus 1% Correct Answer Incorrect Answer
      B Bank Rate minus 2% Correct Answer Incorrect Answer
      C Bank Rate minus 3% Correct Answer Incorrect Answer
      D Bank Rate minus 4% Correct Answer Incorrect Answer
      E Bank Rate minus 5% Correct Answer Incorrect Answer

      Solution

      Banks earn interest when they deposit money (shortfall) into RIDF or similar funds. Interest rates depend on how much shortfall they have: Β 

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