Banking Awareness - Banking Acts, Reforms & Risk Management
Which of the following statements correctly reflects the impact of MCLR on borrowers?
Which of the following statements correctly reflects the impact of MCLR on borrowers?
medium Q7 of 15
Step-by-Step Solution
Step 1: Recall borrower-side impact
MCLR improves transmission of policy changes.Step 2: Identify borrower benefit
Rate cuts are passed on more quickly.Final Answer:
Borrowers receive quicker benefit of rate cuts → Option CQuick Check:
Faster transmission benefits borrowers ✅
Quick Trick: Rate cut benefit sooner = MCLR advantage.
Common Mistakes:
MISTAKES- Assuming MCLR makes rates uniform across banks.
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