The rate at which a central bank discount first class bills is called the

The rate at which a central bank discount first class bills is called the

Answer Details

The rate at which a central bank discounts first class bills is called the bank rate. The bank rate is the interest rate at which a central bank lends money to commercial banks within the country. It is often considered a benchmark rate as it influences other interest rates in the economy. The bank rate is an important monetary policy tool used by central banks to regulate the money supply in the economy.