Multiple choice

What does bank rate mean?

  1. It is the rate of interest charged by commercial banks.

  2. It is the rate of interest at which commercial banks discount the bills of their borrowers.

  3. It is the rate of interest allowed by commercial banks on their deposits.

  4. It is the rate at which RBI purchases or rediscounts bills of exchange of commercial banks.

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct answer is (4). 

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