An increase in the Bank Rate generally indicates that the (a) market rate of interest is likely to fall

At Price, P1 = Rs 10 Total Revenue, TR1 = P1 x Q1 = 50 = TR1/P1 = Q1 = 50/10 = Q1 = Q1 = 5units At Price, = Rs 15 Total Revenue, TR2 =...

(a) Low bank rate means more liquidity in the market.

(d) Bank Rate is that rate of interest at which central bank of a country provides refinancing facilities to commercial banks. The bank rate, a benchmark rate at which RBI...

(c) Federal Bank is a major Indian commercial bank in the private sector, headquartered at Kochi, Kerala.

(b) Gilt-edged is the market in government securities guaranteed by the government – centre or state. The term means least-risk/best quality by way of least risk of default in repayment...

Solution: Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.  R=100*60/100*6 =10% p.a  Now, P = Rs. 12000. T = 3 years and R = 10% p.a.  C.I=Rs.[12000*[1+10/100]3−1]        =Rs.3972

Bank rate is the rate at which central bank offers loans to the Commercial Banks as a lender of last resort. During inflation, when supply of credit is to be...

Features of money market: (i) It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year. (ii) Money market instruments are highly...

Lines from the Para: (a) "He called one of his rich friends Sudhir and asked him to invest Rs.5 crore in shares of his bank”. (b) "On regular inspection and by conducting...

Lines from the Para: (a) "He called one of his rich friends Sudhir and asked him to invest Rs.5 crore in shares of his bank”. (b) "On regular inspection and by...