Question

What will be the use of the Marginal Cost of Funds based lending rate?

A Change the rate of interest charged according to the decision of the Reserve Bank of India base rate Correct Answer Incorrect Answer
B Ensure availability of bank credit at interest rates which are fair to the borrowers as well as the bank Correct Answer Incorrect Answer
C Lower the lending rate so that more loans are taken by the borrowers Correct Answer Incorrect Answer
D Benchmark interest rate indexes used to make adjustments to adjustable rate mortgages Correct Answer Incorrect Answer

Solution

The correct answer is B

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