Top

Discussion

Bank rates implies the rate of interest:

  • A.At which the Reserve Bank of India accepts the deposit of commercial bank. 
  • B.At which the Reserve Bank of India discounts the bill of exchange 
  • C.Payable on bond 
  • D.None of these

Answer: C

Bank rate implies the rate of interest at which the central bank (RBI) discount the bill of exchange. In other word, it is the rat of interest at which RBI provides loan to commercial bank. It is instrument of monetary policy to effluence money supply in economy.

No comment is present. Be the first to comment.
Loading…

Post your comment