UPSC Civil Services Prelims 2015
Question 14 of 55Indian Economy
Which one of the following best describes the term ‘Marginal Cost of Funds based Lending Rate (MCLR)’?
AThe rate at which RBI lends to banks overnight
BThe internal benchmark lending rate linked to the marginal cost of funds of banks
CThe minimum rate fixed by government for crop loans
DThe rate at which NBFCs borrow from banks
Correct Answer
The correct answer is hidden
Explanation
34 words hidden ... monetary policy transmission by linking bank lending rates more closely to changes in funding costs. It is distinct ... 32 words hidden