Multiple choice

Which of the following rates is not determined by the Reserve Bank of India?

  1. Bank Rate

  2. CRR

  3. SLR

  4. PLR
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Prime Lending Rate (PLR) is determined by individual banks based on their cost of funds and market conditions, not set by RBI. RBI directly controls Bank Rate, Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR) as monetary policy tools. PLR is a benchmark rate set autonomously by commercial banks.

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