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When bank rate and repo rate are increased, the commercial banks take less amount as loans from the Reserve Bank of India. As a result, it lends less to the general public and the money supply is reduced. Similarly, when bank and repo rates are decreased, commercial bank borrows more from RBI. As a result, banks lend more to general public and hence the money supply is increased.

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Bank rate is the rate which is charged by RBI to commercial bank on loan taken by C.B for long term basis by rbi...
when loan is for short period of time the rate is charged called repo rate...
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When bank rate and report rate are increased, the commercial banks take less amount as loans from the RBI. As a result, it lends less to the general public and the money supply is reduced.

Similarly, when bank and repo rates are decreased, the bank takes borrows more from RBI. As a result, banks lend more to general public and hence the money supply is increased.
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