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Answer Posted / shinoj.k.s.
Investopedia Says: A central bank adjusts the supply of
currency within national borders by adjusting the bank
rate. When the central bank reduces the bank rate, it
increases the attractiveness for commercial banks to
borrow, thus increasing the money supply. When the central
bank increases the bank rate, it decreases the
attractiveness for commercial banks to borrow, consequently
decreasing the money supply.
Bank Rate
6.00% (w.e.f. 29/04/2003)
Some of the other rate
Saving bank rate:- 3.5%
Deposit Rate - 6.00% - 7.50%
| Is This Answer Correct ? | 17 Yes | 5 No |
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