Multiple choice

Bank rate means

  1. interest rate charged by moneylenders

  2. interest rate charged by scheduled banks

  3. rate of profit of the banking institution

  4. the official rate of interest charged by the central bank of the country
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D Correct answer
Explanation

The bank rate is the official interest rate at which the central bank of a country lends money to commercial banks to meet their long-term financial needs.

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