Economics · Monetary Policy
Bank Rate is defined as the rate at which:
- 1the RBI lends long-term funds to commercial banks.✓
- 2commercial banks lend short-term loans to the RBI.
- 3a commercial bank lends money to its retail customers.
- 4commercial banks lend long-term loans to the RBI.
Correct answer
the RBI lends long-term funds to commercial banks.
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