Multiple choice

Which of the following is the rate below which a bank cannot generally lend money?

  1. Base rate

  2. Floor rate

  3. Repo rate

  4. Call money rate

  5. Bank rate

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

Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers.