Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Question:

Which of the following is the correct definition of bank rate?

Options:

It is the rate of interest payable by commercial banks to RBI.

It is the rate of interest payable by a scheduled bank at which RBI lends overnight.

It is the rate of interest payable by a consumer to commercial banks.

It is the rate of interest payable by RBI to commercial banks.

Correct Answer:

It is the rate of interest payable by commercial banks to RBI.