what is bankrate? what are tha effects of changes in bank RATE?
Answer (1)
Student Expert
8th Nov, 2019
Bank rate is defined as a rate at which a Central Bank gives away loans or funds to the commercial banks. This concept bankrate is a key to RBI to access and control the money supply chain. A change in bank rates may trigger a ripple effect , as it impacts every sphere of a country's economy. For instance, stock markets prices tend to react to unexpected interest rate changes . A change in bank rates affects customers as it influences prime interest rates for personal loans.
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