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What is the bank rate? - Economics

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Question

What is the bank rate?

Short Answer
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Solution

The rate at which the central bank loans money to commercial banks in exchange for authorised securities is known as the bank rate. A change in the bank rate causes a change in the market's other interest rates. The Bank Rate is a tool used by central banks to regulate lending.

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Chapter 14: Banks: Commercial Bank and Central Bank - TEST YOURSELF QUESTIONS [Page 273]

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Frank Economics [English] Class 12 ISC
Chapter 14 Banks: Commercial Bank and Central Bank
TEST YOURSELF QUESTIONS | Q 17. | Page 273
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