Multiple choice

Directions: Choose the correct option for the given question.

12th Finance Commission has recommended to merge and determine one single interest rate on various outstanding central loans to states having different interest rates. What is this recommended interest rate?

  1. 7.0%

  2. 7.5%

  3. 8.0%

  4. 8.5%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The 12th Finance Commission, which made recommendations for the period 2005-10, suggested consolidating various central loans to states into a single interest rate of 7.5%. This was intended to simplify the fiscal relationship between the center and states.

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