1 View

Question : What is the bank rate?

Option 1: The rate at which the Central bank of a country advances loans to other banks in the country.

Option 2: The rate at which banks advance loans to customers.

Option 3: The rate at which banks lend among themselves.

Option 4: The rate at which banks lend to money lenders.


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: The rate at which the Central bank of a country advances loans to other banks in the country.


Solution : The correct option is the Rate at which the Central bank of a country advances loans to other banks in the country .

The rate at which a central bank like RBI loans money to commercial banks and other financial institutions is known as the bank rate. When a central bank raises the bank rate, commercial banks must pay more to borrow money from the central bank. Commercial banks might, therefore, increase the interest rates they impose on consumer loans as a result.

SSC CGL Complete Guide

Candidates can download this ebook to know all about SSC CGL.

Download EBook

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books