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The rate of interest on which commercial...

The rate of interest on which commercial banks borrow money from RBI to meet their short term credit needs is known as:

A

Sub- Prime Lending Rate

B

Statutory Lending Rate

C

Prime Lending Rate

D

Bank Rate

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Verified by Experts

The correct Answer is:
D
A bank rate is the interest rate at which a nation.s central bank lends money to domestic banks, often in the form of very short-term loSol. Managing the bank rate is a method by which central banks affect economic activity.
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