CUET Preparation Today
What do you understand by the term "Bank Rate"? |
Rate at which commercial bank lends finance to government Rate at which commercial bank allows finance to central bank Rate at which central bank allows finance to commercial bank None of the above |
Rate at which central bank allows finance to commercial bank |
Bank rate is the rate at which central bank of the country i.e., RBI in case of India allows finance to commercial bank. It is a monetary tool which the central bank uses in order to control the money supply in the economy. |
