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    Question

    What will be the use of the Marginal Cost of Funds based

    lending rate?
    A Change the rate of interest charged according to the decision of the Reserve Bank of India base rate Correct Answer Incorrect Answer
    B Ensure availability of bank credit at interest rates which are fair to the borrowers as well as the bank Correct Answer Incorrect Answer
    C Lower the lending rate so that more loans are taken by the borrowers Correct Answer Incorrect Answer
    D Benchmark interest rate indexes used to make adjustments to adjustable rate mortgages Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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