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JAMB Commerce 2004 Question 21

Question 21

Banking

Charges for loans paid by commercial banks to the Central Bank of Nigeria are called

  1. A.bank rates
  2. B.credit charges
  3. C.interest rates
  4. D.bank charges
Show the answer and explanation

Answer: A (bank rates)

Explanation

The bank rate is the rate the Central Bank charges commercial banks when it lends to them as lender of last resort.