Question
Economics Question on Money and Banking
Bank Rate is:
A
The rate of interest at which RBI gives loans to industries
B
The rate at which RBI gives loans to the commercial banks
C
The rate of interest at which Agricultural Banks give loans to the farmers
D
The rate of interest at which Co-operative banks give loans to the customers
Answer
The rate at which RBI gives loans to the commercial banks
Explanation
Solution
The correct option is (B) : The rate at which RBI gives loans to the commercial banks