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प्रश्न
Define the following term:
Cash Reserve Ratio.
What is cash reserve ratio?
What is meant by cash reserve ratio?
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उत्तर
Cash Reserve Ratio (CRR) is a certain minimum percentage of deposits that commercial bank and has to keep as reserves with the central bank.
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संबंधित प्रश्न
Define bank rate.
Which of the following is a selective/qualitative method of credit control?
During deflation, the Central Bank usually ______.
The central bank controls credit _____ .
Which of the following is not a quantitative method of credit control?
Bank rate is the rate at which:
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 :
Give any two reasons as to why a country needs a central bank.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Margin Requirements.
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
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.
What is meant by Legal Reserve Ratio?
Define moral persuasion.
Give an example of margin requirements.
