C: The rate at which the Central Bank of a country discounts the bills of commercial banks

Bank rate, also known as the discount rate, is the rate at which the central bank of a country discounts the bills of commercial banks. It is the interest rate at which the central bank lends money to commercial banks.

The bank rate is a key tool of monetary policy that is used by the central bank to influence the supply and demand of credit in the economy. When the bank rate is increased, it becomes more expensive for banks to borrow from the central bank, which in turn increases the cost of borrowing for customers. This can reduce the demand for loans and help to curb inflationary pressures. When the bank rate is decreased, it becomes less expensive for banks to borrow from the central bank, which can stimulate economic activity by increasing the supply of credit in the economy.

The bank rate is different from the interest rates that commercial banks charge on loans to their customers, which are known as the lending rates. The bank rate is also different from the interest rates that banks pay on deposits, which are known as the deposit rates. The bank rate is set by the central bank and is not related to the rates that commercial banks charge or pay on loans or deposits.

A bank rate is the interest rate at which a nation 's central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is a method by which central banks affect economic activity. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.

C: SLR

The options you listed are all qualitative credit control measures of the Reserve Bank of India (RBI), except for the statutory liquidity ratio (SLR).

• Capital Rationing: Capital rationing is the process of limiting the amount of capital that a bank can lend to a particular borrower or sector. This is a qualitative measure that is used to ensure that banks do not lend excessively to risky or high-risk borrowers or sectors.

• Moral Suasion: Moral suasion is a non-coercive method of persuasion that is used by the central bank to influence the behavior of commercial banks. The central bank can use moral suasion to persuade banks to follow certain policies or practices, such as lending to priority sectors or maintaining a certain level of liquidity.

• Margin Requirement: The margin requirement is the percentage of the total value of a collateralized loan that must be paid in cash or other approved securities. By increasing the margin requirement, the central bank can make it more expensive for banks to lend, which can reduce the supply of credit in the economy.

The statutory liquidity ratio (SLR) is a quantitative measure of credit control that is used by the RBI to regulate the liquidity of commercial banks. It is the percentage of deposits that commercial banks are required to hold in the form of liquid assets such as cash, gold, and approved securities. By increasing the SLR, the RBI can reduce the amount of money that commercial banks have available to lend, which can reduce the supply of credit in the economy.

B: SLR

The statutory liquidity ratio (SLR) is the portion of total deposits that a commercial bank is required to keep with itself in the form of liquid assets such as cash, gold, and approved securities. The SLR is expressed as a percentage of total deposits and is determined by the central bank of the country.

In India, the SLR is determined by the Reserve Bank of India (RBI). By increasing the SLR, the RBI can reduce the amount of money that commercial banks have available to lend, which can reduce the supply of credit in the economy. By decreasing the SLR, the RBI can increase the amount of money that commercial banks have available to lend, which can increase the supply of credit in the economy.

The cash reserve ratio (CRR) is a different measure of credit control that is used to regulate the liquidity of commercial banks. It is the percentage of deposits that commercial banks are required to hold with the central bank as a reserve. The repo rate and reverse repo rate are both interest rates that are used by the central bank to influence the supply of credit in the economy. The repo rate is the interest rate at which the central bank lends money to commercial banks through repurchase agreements (repos), while the reverse repo rate is the interest rate at which the central bank absorbs excess liquidity from the banking system.

The different instruments of credit control used by the Reserve Bank of India are  Statutory Liquidity Ratio (SLR) , Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs).

Central banks do not deal  directly with customers . A single central bank in a country controls the entire banking industry. The country 's central bank holds deposits for the government. The government deposits funds to provide health insurance, social welfare, unemployment benefits, etc.

The correct answer is 'D '- All of the above. The selective instruments used by RBI for Controlling Credit are Margin Requirement, Issue of directives, and Regulation of consumer credit. Margin Requirement is a method of controlling the amount of credit a borrower can obtain from a lender. Issue of directives means issuing directives to commercial banks to limit their lending activities. Regulation of consumer credit sets the limit on consumer credit and sets the interest rates for consumer loan.

Bank rate, also referred to as the discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. Whenever a bank has a shortage of funds, they can typically borrow from the central bank based on the monetary policy of the country.

The Reserve Bank of India (RBI) uses the monetary policy to regulate liquidity in a manner that balances inflation and help in GDP growth and development.