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प्रश्न
The rate of which commercial banks borrow from the Central Bank is the:
विकल्प
Bank rate
Deposit rate
Lending rate
None of these
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उत्तर
Bank rate
Explanation:
The bank rate is the rate at which commercial banks borrow from the central bank. It is defined as "the rate at which the central bank is ready to rediscount the first-class securities and bills presented before it by the commercial banks." Central banks employ the bank rate as a monetary policy tool to influence the economy.
संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control.
Explain how credit rationing helps to control credit in an economy.
Bank rate is the rate at which:
Give any two reasons as to why a country needs a central bank.
Define the term Statutory Liquidity Ratio.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Central bank is the lender of the last resort. Explain.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
