Which among the following is called the rate of interest charged by RBI for lending money to various commercial banks by rediscounting of the bills…

CA Foundation · Business Economics · MTP · June 2024
Which among the following is called the rate of interest charged by RBI for lending money to various commercial banks by rediscounting of the bills in India?
(A) A. Bank rate
(B) B. Discount window.
(C) C. Marginal Standing facility
(D) D. Overnight rate

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Bank rate

Topics: Money Market

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