Bank rate is the official interest rate set by the Central Bank for lending to commercial banks without collateral.
Bank rate means :
Asked in BPSC Prelims Exam 60 62rd · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
Show answer
Answer: D. Official rate of interest charged by Central Bank
More Economic Development questions
- Which one of the following is not correct about Repo rate?
- The Cash Reserve Ratio refers to
- Which of the following policies help to raise interest rate unambiguously and thereby lead to appreciation of currency?
- Which of the following indicators is/are used to observe the monetary transmission mechanism in the economy? 1. Weighted average lending rate 2. Weighted average domestic term deposit rate 3. 1-year median MCLR 4. SDF rate Select the correct answer using the code given below.
- Consider the following statements regarding instruments of monetary policy: 1. Standing deposit facility (SDF) rate was introduced in April 2022. 2. SDF rate replaced fixed reverse repo rate as the floor of the LAF corridor. Which of the statements given above is/are correct?
- The monetary policy in India uses which of the following tools? 1. Bank rate 2. Open market operations 3. Public debt 4. Public revenue Select the correct answer using the code given below.
- Which of the following action(s) by the Government would lead to contraction of money supply in the economy ? 1. Purchase of Treasury Bills by the central bank from public 2. Sale of Treasury Bills by the central bank to public 3. Sale of foreign exchange by the central bank 4. Purchase of foreign exchange by the central bank Select the correct answer using the code given below :
- Purchase of Treasury Bills by the central bank from public The central bank pays money to the public in exchange for securities. This injects money into the economy, increasing money supply (expansionary). 2. Sale of Treasury Bills by the central bank to public The central bank receives money from the public in exchange for securities.