Economic Concepts Quiz
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Questions and Answers

What term refers to the rate at which the central bank of a country lends money to commercial banks?

  • Discount Rate (correct)
  • Prime Rate
  • Deposit Rate
  • Federal Funds Rate
  • Which institution is responsible for implementing monetary policy in most countries?

  • Central Bank (correct)
  • International Monetary Fund (IMF)
  • World Bank
  • Commercial Banks
  • In the context of banking, what does the term 'NBFC' stand for?

  • National Banking and Finance Corporation
  • National Bureau of Fiscal Coordination
  • New Business Financing Criteria
  • Non-Banking Financial Company (correct)
  • What does MCLR stand for in the text provided?

    <p>Marginal Cost of Funds based Lending Rate</p> Signup and view all the answers

    Which term refers to the interest rate at which a depository institution lends immediately available funds to another depository institution overnight?

    <p>Federal Funds Rate</p> Signup and view all the answers

    What is the main topic discussed in the text?

    <p>Monetary Policy</p> Signup and view all the answers

    Which organization is mentioned in the text that plays a crucial role in monetary policy?

    <p>RBI (Reserve Bank of India)</p> Signup and view all the answers

    What is the purpose of a 'DEVELOPMENT LOANS' as hinted in the text?

    <p>Supporting infrastructure projects</p> Signup and view all the answers

    Which term is commonly associated with banking that is indirectly referenced in the text?

    <p>Interest Rate</p> Signup and view all the answers

    The text mentions 'LIMITS ON LOANS' as a concept. What financial aspect does this concept primarily relate to?

    <p>Credit Risk</p> Signup and view all the answers

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