____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks

Repo rate
Bank rate
Prime lending rate
Reverse repo rate

The correct answer is: A. Repo rate

The repo rate is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks. It is the rate at which commercial banks borrow money from the central bank by selling securities to the central bank. The repo rate is used by the central bank to control the money supply and to influence interest rates in the economy.

The bank rate is the rate at which the central bank lends money to commercial banks. It is the rate at which the central bank sets the cost of borrowing for commercial banks. The bank rate is used by the central bank to control the money supply and to influence interest rates in the economy.

The prime lending rate is the rate of interest at which banks lend money to their most creditworthy customers. It is the rate at which banks set the cost of borrowing for their most creditworthy customers. The prime lending rate is used by banks to set the interest rates on other loans, such as mortgages and car loans.

The reverse repo rate is the rate at which commercial banks lend money to the central bank by buying securities from the central bank. It is the rate at which commercial banks deposit money with the central bank. The reverse repo rate is used by the central bank to control the money supply and to influence interest rates in the economy.