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The rate at which the central bank lends...

The rate at which the central bank lends money to commerical banks

A

CRR

B

SLR

C

bank rate

D

all of these

Text Solution

Verified by Experts

The correct Answer is:
c
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Knowledge Check

  • The rate at which the Reserve Bank of India lends money to commercial banks is known as

    A
    Repo Rate
    B
    Base Rate
    C
    Bank Rate
    D
    Reverse Repo Rate

  • The interest rate at which the Reserve Bank of India lends to commercial banks in the short term to maintain liquidity is known as:

    A
    Interest rate
    B
    Repo rate
    C
    Bank rate
    D
    Reverse repo rate

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    Currency is issued by central bank yet we say that commercial banks create money. Explain, How is this money creation by commercial banks likely to affect the national income?

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