Multiple choice

Base rate in banks is _________.

  1. rate of interest payable on demand deposit

  2. rate of interest payable on fixed deposits

  3. rate of interest charged by RBI on long term borrowings of public sector units

  4. the rate below which no bank allows their lending to anyone

  5. all of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Yes, its the correct choice. Base rate is the rate below which no bank allows their lending to anyone. It is fixed by RBI.