Question

Many a time we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks, normally they announce this decision of theirs
A. immediately after the Union Budget is presented in the Lok Sabha every year.
B. when the RBI makes changes in its policy rates.
C. when the Monetary and Credit Policy of the RBI is reviewed periodically.

• A. Only (A)
• B. Only (B)
• C. Only (C)
• D. Only (B) and (C)

Answer 1

Answer: (D)

Only (B) and (C)

RBI is the apex bank. It has the power to control the credit supply in an economy through monetary and fiscal policy. Many a time we read in newspapers that some big banks have revised their lending rates to make them dearer or cheaper. Though the decision to raise the lending rates is always in the hands of the banks, normally they announce this decision of theirs
a)when the RBI makes changes in its policy rates.
b)when the Monetary and Credit Policy of the RBI is reviewed periodically.