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प्रश्न
During deflation, the Central Bank usually ______.
विकल्प
Increases CRR
Increases SLR
Increases bank rate
Increases buying Government Securities
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उत्तर
During deflation, the Central Bank usually increases buying Government Securities.
Explanation:
During deflation, the central bank works to raise the money supply in the economy, hence increasing the demand for products. This is only conceivable if Increases buying Government Securities is chosen, which involves increasing the money supply by purchasing government assets on the market.
संबंधित प्रश्न
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 ______.
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.
What is meant by open market operations?
Define the term Statutory Liquidity Ratio.
Differentiate between quantitative and qualitative methods of credit control.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
Give an example of margin requirements.
