In September 2013, the Bank of India raised the rate at which it lends to commercial banks.
I. The Fed lends to commercial banks, just as India does. What is the name for the rate that the Fed charges commercial banks and other eligible institutions for loans?
II. Was the Bank of India attempting to increase or decrease the money supply by increasing the rate at which it lends to commercial banks?
III. The Bank of India has tools very similar to those of the Federal Reserve in the United States. How could the Bank of India have used its other tools to achieve the same result as raising the rate at which it lends to commercial banks?

Question

Quizplus · Accepted Answer

The Answer of In September 2013, the Bank of India raised the rate at which it lends to commercial banks.
I. The Fed lends to commercial banks, just as India does. What is the name for the rate that the Fed charges commercial banks and other eligible institutions for loans?
II. Was the Bank of India attempting to increase or decrease the money supply by increasing the rate at which it lends to commercial banks?
III. The Bank of India has tools very similar to those of the Federal Reserve in the United States. How could the Bank of India have used its other tools to achieve the same result as raising the rate at which it lends to commercial banks?

In September 2013, the Bank of India Raised the Rate