Bank rate example sentences

In short, a low (or high) bank rate reduces (or increases) rdr and hence increases (or decreases) the value of the money multiplier, which is (1 + cdr)/(cdr + rdr).A low (or high) bank rate encourages banks to keep smaller (or greater) proportion of their deposits as reserves, since borrowing from RBI is now less (or more) costly than before.The floating interest rate is usually tagged with the bank rate.The floating interest rate is usually tagged with the bank rate.A high bank rate makes such borrowing from RBI costly and, in effect, encourages the commercial banks to maintain a healthy rdr.The floating interest rate is usually tagged with the bank rate.RBI regulates money supply by controlling the stock of high powered money, the bank rate and reserve requirements of the commercial banks.As mentioned earlier, RBI can affect the reserve deposit ratio of commercial banks by adjusting the value of the bank rate – which is the rate of interest commercial banks have to pay RBI – if they borrow money from it in case of shortage of reserves.The floating interest rate is usually tagged with the bank rate.Commercial banks can borrow money from RBI at the bank rate when they run short of reserves.The floating interest rate is usually tagged with the bank rate.The floating interest rate is usually tagged with the bank rate.The floating interest rate is usually tagged with the bank rate.The floating interest rate is usually tagged with the bank rate.Apart from these ratios RBI uses a certain interest rate called the Bank Rate to control the value of rdr.