BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bank Rate
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Prime Lending Rate
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Loan Rate
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Discounting Rate
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Detailed explanation-1: -Bank rate is the rate charged on the loans offered by the Central bank to the commercial banks without any collateral. It is also considered as the rate at which the central bank discounts the bills of the commercial banks.
Detailed explanation-2: -Bank Rate is the rate at which central bank discounts the bills of commercial banks.
Detailed explanation-3: -Repo Rate: It is the interest rate at which the central bank of a country lends money to commercial banks. The central bank in India i.e. the Reserve Bank of India (RBI) uses repo rate to regulate liquidity in the economy.
Detailed explanation-4: -What is Bank Rate? Bank rate is the rate at which RBI rediscounts first class bills of exchange or commercial bills submitted by banks.