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    Question

     In 2016, which Indian Financial System method was

    introduced by RBI?
    A Marginal Cost of Funds Based Lending Rate Correct Answer Incorrect Answer
    B LIFO Correct Answer Incorrect Answer
    C FIFO Correct Answer Incorrect Answer
    D Prime Lending Rate Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Marginal cost of funds based lending rate defines the process used to determine the minimum home loan rate of interest. It was introduced in the Indian financial system by the Reserve Bank of India on April 1, 2016. It replaced the base rate system that was introduced in the year 2010.

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