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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.
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
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 ______.
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 |
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.
Give any two reasons as to why a country needs a central bank.
What is meant by open market operations?
Define the term Statutory Liquidity Ratio.
Central bank is the lender of the last resort. Explain.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Who controls the credit supply in an economy?
What is this policy called that controls the credit supply in an economy?
What do you mean by credit control?
What are quantitative methods of credit control?
Describe two quantitative credit control measures of the Central Bank.
