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प्रश्न
Give an example of margin requirements.
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उत्तर
Example of margin requirements:
Suppose the central bank fixes a margin of 30%, then the bank is allowed to give a loan only up to 70% of the value of the security.
संबंधित प्रश्न
Define bank rate.
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
Explain how credit rationing helps to control credit in an economy.
During deflation, the Central Bank usually ______.
In order to encourage investment in the economy, the central bank may ______.
Bank rate is the rate at which:
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.
Define the term Statutory Liquidity Ratio.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
Who controls the credit supply in an economy?
What is this policy called that controls the credit supply in an economy?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
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.
Describe two quantitative credit control measures of the Central Bank.
