Which of the following statement is correct?
Which of the following statement is correct?
(a) Bank rate is the rate at which Central Bank is ready to give credit to Commercial banks
(b) Bank rate and market interest rates are different
(c) Bank rate is the discount rate of the Central Bank
(d) All of the above
Anurag Pathak Changed status to publish January 3, 2024
Ans – (d)
Explanation:-
(a) Bank rate is the rate at which the Central Bank is ready to give credit to Commercial banks for long-term needs.
(b) Bank rate is the interest rate at which the central bank provides loans to Commercial Banks. whereas, market interest rate is the rate at which commercial bank provides loans to the public
(c) Bank Rate is also known as discount rate.
Anurag Pathak Changed status to publish January 3, 2024
