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Explain the role of the following in correcting the deficient demand in an economy: Bank rate
Explain the role of the following in correcting the deficient demand in an economy: Bank rate
Bank rate in correcting the deficient demand in an economy – Bank rate is the rate at which the central bank gives money to the commercial banks. To regulate the circumstance of the deficit demand, the bank rate is decreased, due to this depletion of bank rate by the central bank, commercial banks will certainly fall the market rate of interest.