Question

1. What is bank rate? What are the effects of changes in bank rate? ?
బాంక్ రేటు అనగానేమి? బాంక్ రేటు యొక్క ప్రభావంను తెలియజేయుము
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Answer 1

Bank rate, also known as discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank.

Managing the bank rate is a method by which central banks affect economic activity. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.