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Question
Bank rate is for ______
Options
Commercial banks by the government
Commercial banks by the central bank
Central banks by the central bank
Central bank by the commercial banks
MCQ
Fill in the Blanks
Solution
The bank rate is for Commercial banks by the central bank
Explanation:
The LRR (Legal reserve ratio) permits commercial banks to maintain a portion of their deposits in reserve while using the balance to extend loans. This process' cycle of transactions aids in the creation of money.
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Central Bank: Functions
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