Q. The term Weighted Average Call Rate (WACR), recently seen in the context of monetary policy, is best described as:

[A] The average interest rate at which the RBI lends long-term funds to banks.

[B] The interest rate paid by banks to depositors on savings accounts.

[C] The average overnight interest rate at which banks borrow and lend money among themselves.

[D] The fixed rate of interest on government securities.

Answer: C
Notes:

Explanation– The Weighted Average Call Rate (WACR) is the average overnight interest rate at which banks lend and borrow funds among themselves, and the RBI uses it as the operating target for monetary policy.

Source- ET

Blog
Academy
Community