wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The rate at which the central bank lends money to member commercial banks against approved securities is known as


A

Marginal rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

Money rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

Bank rate

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D

Interest rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C

Bank rate


The bank rate policy is the traditional method of credit control used by the central bank. The rate at which the central bank lends money to its member commercial banks against approved securities is known as the bank rate.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Introduction to Banking
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon