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प्रश्न
Give any two reasons as to why a country needs a central bank.
Mention two reasons for setting up the central bank (or the Reserve Bank of India).
With reference to the central bank of a country.
State two reasons for the need of a Central Bank in a country.
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उत्तर
Two reasons for setting up the Central Bank are:
- The Central Bank is set up to control the supply of money and credit in the country.
- Every central bank is set up to control the entire banking system of a country.
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संबंधित प्रश्न
Define bank rate.
Which of the following is a selective/qualitative method of credit control?
Explain how credit rationing helps to control credit in an economy.
Which of the following is not a quantitative method of credit control?
Bank rate is the rate at which:
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.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Who controls the credit supply in an economy?
What is the credit supply policy in an economy called?
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 are quantitative methods of credit control?
What is meant by Legal Reserve Ratio?
Define moral persuasion.
