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    5. The minimum rate at which the central bank re-discounts bills held by commercial banks is called: 

    Question

    The minimum rate at which the central bank re-discounts

    bills held by commercial banks is called: 
    A Repo Rate Correct Answer Incorrect Answer
    B CRR Correct Answer Incorrect Answer
    C Bank Rate Correct Answer Incorrect Answer
    D Prime Lending Rate Correct Answer Incorrect Answer
    E SLR Correct Answer Incorrect Answer

    Solution

    Bank rate is the minimum rate at which the central bank re-discounts bills held by commercial banks.

    Practice Next
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