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Commerce · Q306

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 306

Q306

For which of the following reason/s, RBI is the lender of the last resort to scheduled commercial banks?

A.
The parties can approach RBI when their limits are exhausted
B.
They are not able to get loans from other banks
C.
RBI meets directly or indirectly all their reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy
Answer
D.
All of the above

Answer: Option C

Solution

Answer: Option C
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