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Question
The rate of interest at which banks borrow money for short periods from the Reserve Bank of India is called _____________.
The rate of interest at which banks borrow money for short periods from the Reserve Bank of India is called _____________.
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Solution
The correct option is A Bank Rate
The rate of interest at which banks borrow money for short period from Reserve Bank Of India is called as bank rate. The rate of interest offered by the
Reserve Bank of India on deposit of surplus funds by commercial banks is
known as bank rate. Bank rate is one of the quantitative tools used to
control the credit creation capacity of the commercial banks.
The rate of interest at which banks borrow money for short period from Reserve Bank Of India is called as bank rate. The rate of interest offered by the Reserve Bank of India on deposit of surplus funds by commercial banks is known as bank rate. Bank rate is one of the quantitative tools used to control the credit creation capacity of the commercial banks.
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