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प्रश्न
In order to encourage investment in the economy, the central bank may ______.
विकल्प
Reduce cash reserve ratio
Increase cash reserve ratio
Sell government recruiters in open market
Increase in bank rate
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उत्तर
In order to encourage investment in the economy, the central bank may Reduce cash reserve ratio.
Explanation:
- The central bank reduces the cash reserve ratio (CRR), allowing commercial banks to keep fewer reserves while having greater funds to lend.
- This boosts the economy's money supply and encourages investment by providing more loans to businesses and consumers at lower interest rates.
- The other options, such as raising the CRR or bank rate, would limit the money supply, discouraging investment.
संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
The rate of which commercial banks borrow from the Central Bank is the:
The central bank controls credit _____ .
Which of the following is not a quantitative method of credit control?
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 |
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
What is meant by open market operations?
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Differentiate between quantitative and qualitative methods of credit control.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
Describe two quantitative credit control measures of the Central Bank.
