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प्रश्न
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
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उत्तर
- Under this method, the central bank adopts the policy of persuasion and moral influence on the commercial banks in order to get them to fall in line with its policy.
- The central bank frequently announces its policy and urges the commercial banks to adopt it.
- This is exercised through letters, discussions and directives to the banks.
- The member banks generally do not ignore the advice of the central bank.
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संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
The rate of which commercial banks borrow from the Central Bank is the:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Central bank is the lender of the last resort. Explain.
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 do you mean by credit control?
What are quantitative methods of credit control?
What is meant by Legal Reserve Ratio?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
