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प्रश्न
Bank rate is the rate at which:
विकल्प
Commercial banks purchase government securities from the central bank.
Commercial banks can take loans from the central bank for a short term.
Short-term loans are given by commercial banks.
Commercial bank take loans from the public.
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उत्तर
Short-term loans are given by commercial banks.
Explanation:
The bank rate is the rate at which the central bank lends money to commercial banks on a short-term basis. Changes in the bank rate can affect the cost of borrowing for commercial banks, which in turn influences the interest rates they give their customers.
संबंधित प्रश्न
Define bank rate.
The rate of which commercial banks borrow from the Central Bank is the:
Define qualitative credit control policy of the RBI.
The central bank controls credit _____ .
In order to encourage investment in the economy, the central bank may ______.
The process of buying and selling of securities by the central bank of a country is known as ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | Bank rate |
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
During inflation, the central bank usually:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.
Reason (R): An increase in cash reserve ratio reduces the excess reserves of commercial banks and hence limits their credit creating power.
What is meant by open market operations?
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Margin Requirements.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
What is the credit supply policy in an economy called?
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
Describe two quantitative credit control measures of the Central Bank.
