discount rate
penalty rate
interest rate
None of these
Answer is Wrong!
Answer is Right!
The correct answer is: A. discount rate
The bank rate is the interest rate at which commercial banks lend money to each other on an overnight basis. It is set by the central bank and is used to control the money supply. The bank rate is also known as the discount rate.
A penalty rate is a higher interest rate that a borrower may be charged if they do not pay their loan on time.
An interest rate is the amount of money that a borrower pays to a lender for the use of money. Interest rates are usually expressed as a percentage
of the amount borrowed.None of these is the correct answer.