BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bank Rate is____
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Rate at which commercial banks borrow long term funds from central Bank.
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Rate at which commercial banks borrow short term funds from central bank.
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Currently Bank rate is 8.5%
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Both A and C
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Explanation:
Detailed explanation-1: -Bank rate, also known as discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank.
Detailed explanation-2: -The correct answer is The official rate of interest charged by the Central Bank of the country. A bank rate is the interest rate at which a nation’s RBI lends money to domestic banks, often in the form of very short-term loans.
Detailed explanation-3: -discount rate, also called rediscount rate, or bank rate, interest rate charged by a central bank for loans of reserve funds to commercial banks and other financial intermediaries.
There is 1 question to complete.