Bank rate means

Correct option is D

The bank rate is the rate at which the central bank of a country (RBI in India) lends money to commercial banks. It is an important tool for controlling the supply of money and credit in the economy.
Important Key Points:
1. The bank rate influences the interest rates that commercial banks charge their customers.
2. Changes in the bank rate can affect inflation and economic growth.
3. A higher bank rate makes borrowing more expensive, which can reduce spending and investment.
4. A lower bank rate can stimulate borrowing, spending, and investment.
Information Booster:
 Interest rate charged by moneylenders: These are typically higher and not regulated by the central bank.
 Interest rate charged by scheduled banks: Varies based on the bank’s policies and market conditions.
 Rate of profit of banking institutions: This is the return on investments and loans provided by the bank.