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Which of the following interest rates is still regulated?
1. Savings account interest rate
2. Fixed deposit interest rate
3. Current account interest rate
Select the correct answer using the codes given below.
- a)2 only
- b)1 and 2 only
- c)3 only
- d)1 only
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Which of the following interest rates is still regulated?1. Savings ac...
As a part of financial sector reforms, the Reserve Bank has deregulated interest rates on deposits, other than savings bank deposits. The interest rate on savings bank deposits has remained unchanged at 3.5 per cent per annum since March 1, 2003. Keeping in view progressive deregulation of interest rates, it was proposed in the Second Quarter Review of Monetary Policy 2010-11 announced on November 2, 2010 to prepare a Discussion Paper to delineate the pros and cons of deregulating the savings bank deposits interest rate.
Most Upvoted Answer
Which of the following interest rates is still regulated?1. Savings ac...
Regulated Interest Rates
In India, the Reserve Bank of India (RBI) is responsible for regulating interest rates offered by various financial institutions. While the RBI has gradually liberalized the interest rate regime in recent years, certain interest rates are still regulated. Let's examine the given options to determine which interest rates are regulated:
1. Savings Account Interest Rate:
Savings account interest rates are not regulated by the RBI. Banks are free to determine and revise the interest rates offered on savings accounts. This allows banks to compete with each other and attract depositors by offering competitive rates.
2. Fixed Deposit Interest Rate:
Fixed deposit interest rates are regulated by the RBI. Banks are required to follow the guidelines set by the RBI for fixing interest rates on fixed deposits. These guidelines are aimed at ensuring fair practices and protecting the interests of depositors.
3. Current Account Interest Rate:
Current account interest rates are not regulated by the RBI. Similar to savings accounts, banks have the flexibility to determine and revise the interest rates offered on current accounts. This allows banks to design customized offerings to meet the specific needs of businesses and corporate clients.
Correct Answer:
The correct answer is option 'D': 1 only. The only interest rate that is still regulated is the fixed deposit interest rate. The savings account interest rate and current account interest rate are not regulated.
To summarize:
- Savings account interest rates are not regulated.
- Fixed deposit interest rates are regulated.
- Current account interest rates are not regulated.
In India, the Reserve Bank of India (RBI) is responsible for regulating interest rates offered by various financial institutions. While the RBI has gradually liberalized the interest rate regime in recent years, certain interest rates are still regulated. Let's examine the given options to determine which interest rates are regulated:
1. Savings Account Interest Rate:
Savings account interest rates are not regulated by the RBI. Banks are free to determine and revise the interest rates offered on savings accounts. This allows banks to compete with each other and attract depositors by offering competitive rates.
2. Fixed Deposit Interest Rate:
Fixed deposit interest rates are regulated by the RBI. Banks are required to follow the guidelines set by the RBI for fixing interest rates on fixed deposits. These guidelines are aimed at ensuring fair practices and protecting the interests of depositors.
3. Current Account Interest Rate:
Current account interest rates are not regulated by the RBI. Similar to savings accounts, banks have the flexibility to determine and revise the interest rates offered on current accounts. This allows banks to design customized offerings to meet the specific needs of businesses and corporate clients.
Correct Answer:
The correct answer is option 'D': 1 only. The only interest rate that is still regulated is the fixed deposit interest rate. The savings account interest rate and current account interest rate are not regulated.
To summarize:
- Savings account interest rates are not regulated.
- Fixed deposit interest rates are regulated.
- Current account interest rates are not regulated.
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Which of the following interest rates is still regulated?1. Savings ac...
Option D
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Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer?
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Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer?.
Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following interest rates is still regulated?1. Savings account interest rate2. Fixed deposit interest rate3. Current account interest rateSelect the correct answer using the codes given below.a)2 onlyb)1 and 2 onlyc)3 onlyd)1 onlyCorrect answer is option 'D'. Can you explain this answer?.
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