Question

What is bank rate? what are the effects of changes in bank rate? in telugu​

Answer 1

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When Bank rates changes it suddenly impacts on Economy. When RBI decrease bank rate it is called 'cheap money policy'. Money supply in the economy is increased. When RBI increases bank rate, it is called 'dear money policy'. Money supply in the economy is decreased.

@MissTranquillity

Answer 2

Answer:

Bank rate, also known as discount rate in American English,[1] is the rate of interest which a central bank charges on its loans and advances to a commercial bank. The bank rate is known by a number of different terms depending on the country, and has changed over time in some countries as the mechanisms used to manage the rate have changed.