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The Central Bank & Monetary Policy · Question 44 of 58

Question 44

MediumOriginal question

Goods worth ₹10 lakh are pledged for a loan and the margin requirement is 40%. The largest loan the bank can give is

Options for question 44

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Loan = value × (1 − margin) = 10 × 0.6 = ₹6 lakh.

Worth noting

₹4 lakh is the margin itself, the part not lent.

Concept
Loan with a margin
Typical time
70 s
Your time
—
The rule this testsMargin requirements and moral suasion
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Ten questions from The Central Bank & Monetary Policy, at your own pace.

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