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What is bank rate

Answer Posted / shinoj.k.s.

Investopedia Says: A central bank adjusts the supply of

currency within national borders by adjusting the bank

rate. When the central bank reduces the bank rate, it

increases the attractiveness for commercial banks to

borrow, thus increasing the money supply. When the central

bank increases the bank rate, it decreases the

attractiveness for commercial banks to borrow, consequently

decreasing the money supply.

Bank Rate

6.00% (w.e.f. 29/04/2003)

Some of the other rate

Saving bank rate:- 3.5%

Deposit Rate - 6.00% - 7.50%

Is This Answer Correct ?    17 Yes 5 No



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