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UPSC 1995: Bank Rate implies the rate of interest
(a)paid by the Reserve Bank of India on the deposits of Commercial Banks
(b)charged by Banks on loans and advances
(c)payable on Bonds
(d)at which the Reserve Bank of India discounts the Bills of Exchange
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Not attemptedCorrect Answer: (d) at which the Reserve Bank of India discounts the Bills of Exchange
Section 49 of the RBI Act defines the Bank Rate as the standard rate at which the Reserve Bank of India is prepared to buy or re-discount bills of exchange and other eligible commercial paper. It is not the rate paid on banks’ deposits, on bonds, or the lending rate charged by commercial banks. ([en.wikipedia.org](https://en.wikipedia.org/wiki/Reserve_Bank_of_India?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 1995 Indian Economy question?▼
The correct answer is option (d): at which the Reserve Bank of India discounts the Bills of Exchange. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Monetary Policy & Money Supply question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1995, GS Paper 1, as Question 60. It falls under Indian Economy > Monetary Policy & Money Supply.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Monetary Policy & Money Supply?▼
UPSC has asked 27 questions from Monetary Policy & Money Supply (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.