The rate at which Reserve Bank of India gives loans to the commercial Bank for longer duration;
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Bank Rate.
The Bank Rate is the rate at which the Reserve Bank of India (RBI) provides long-term loans to commercial banks without any repurchase agreement.
Other options explained:
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Repo Rate: Short-term lending by RBI to commercial banks with a repurchase agreement.
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Reverse Repo Rate: Rate at which RBI borrows money from commercial banks.
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Saving Rate: The interest rate paid on savings accounts, set by individual banks.