UPSC Prelims 2011 · Question 13 of 100
UPSC Prelims 2011 question on Bank Rate Liquidity
- ExamUPSC CSE
- Year2011
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicMoney Market
- DifficultyEasy
- TypeDirect
The lowering of Bank Rate by the Reserve Bank of India leads to
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Answer: A. More liquidity in the market
A reduction in Bank Rate lowers borrowing costs for banks and increases liquidity in the economy.