Question:
The interest rate below which banks cannot lend is called:
The interest rate below which banks cannot lend is called:
Updated On: Jan 13, 2026
- Repo rate
- Base rate
- Statutory rate
- Reverse Repo rate
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The Correct Option is B
Solution and Explanation
The base rate is the minimum interest rate set by a bank below which it cannot lend to customers, except in specific cases such as for agricultural loans or government schemes.
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