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प्रश्न
Define the following term:
Margin Requirements.
Explain the meaning of margin requirements.
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उत्तर
A margin is the difference between the loan amount and the market value of the security offered by the borrower against the loan. The central Bank fixes it.
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संबंधित प्रश्न
Define bank rate.
Briefly explain two qualitative methods of credit control adopted by this institution.
During deflation, the Central Bank usually ______.
The central bank controls credit _____ .
Which of the following is not a quantitative method of credit control?
In order to encourage investment in the economy, the central bank may ______.
During inflation, the central bank usually:
Give any two reasons as to why a country needs a central bank.
What is meant by open market operations?
Define the following term:
Cash Reserve Ratio.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
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.
Who controls the credit supply in an economy?
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
What is meant by Legal Reserve Ratio?
Give an example of margin requirements.
