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    Question

    If RBI increases the repo rate by 0.5%, and a bankтАЩs

    base rate is 9%, what is likely new base rate?
    A 8.5% Correct Answer Incorrect Answer
    B 9% Correct Answer Incorrect Answer
    C 9.25% Correct Answer Incorrect Answer
    D 9.5% Correct Answer Incorrect Answer
    E 10% Correct Answer Incorrect Answer

    Solution

    Base rate may rise in response to a repo rate hike as cost of funds increases. New base rate = 9% + 0.5% = 9.5%

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