Bank Rate Explained
The term 'bank rate' refers to the rate of interest that a country's central bank charges on loans provided to commercial banks.
This is a key tool in monetary policy used to manage the money supply and credit conditions in the economy.
Option Analysis
- Option 1 is incorrect as it describes interbank lending rates between commercial banks.
- Option 2 is correct. It accurately defines the bank rate as the interest charged by the central bank on its loans to commercial banks.
- Option 3 is incorrect as it refers to lending rates between private commercial banks, not the central bank's policy rate.
- Option 4 is incorrect as it describes a retail lending rate from a non-scheduled bank to individuals.
The bank rate influences the overall cost of borrowing in the economy.
Similar Questions
- Who among the following has never been a Governor for Reserve Bank of India?
- Which system has been adopted by the Reserve Bank of India for note issue?
- What is the emblem of RBI?
- Which of the following is NOT a function of the Reserve Bank of India (RBI)?
- Who among the following was the first Indian Governor of the Reserve Bank of India?
- The regulatory authority of money supply in India is the:
- Which of the following is NOT a function of the Reserve Bank of India (RBI)?
- The Financial Literacy Week is an initiative by:
- The Reserve Bank of India has established a comprehensive Digital Payment Index (DPI) to record the degree of digitization of payments with _____ as base period.
- Where is the office of the Governor of the Reserve Bank of India?
Important Questions from RBI
The Central Board of Directors of the Reserve Bank of India are appointed for a term of ______ years.
Which of the following Acts was amended to provide a statutory basis for the implementation of the flexible inflation targeting (FIT) framework?
In which year was The Reserve Bank of India was established?
Which of the following institutions is responsible for regulating the formal sources of credit in India?
Which of the following statements about the Reserve Bank of India (RBI) is NOT correct?
