Given two matrices A and B, what is the rank of AB?

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 Doesn't rank means number of non zero rows in a matrix?

The solution in the book is, I guess , wrong because determinant of the matrix AB is not zero and so rank must be 2 but it explains to be 1.

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Yes, I think the rank of AB should be 2. AB can be reduced to the identity matrix, so it has two pivot columns and thus rank 2.