हिंदी

In order to encourage investment in the economy, the central bank may ______. - Economic Applications

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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

MCQ
रिक्त स्थान भरें
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उत्तर

In order to encourage investment in the economy, the central bank may Reduce cash reserve ratio.

Explanation:

  1. The central bank reduces the cash reserve ratio (CRR), allowing commercial banks to keep fewer reserves while having greater funds to lend.
  2. This boosts the economy's money supply and encourages investment by providing more loans to businesses and consumers at lower interest rates.
  3. The other options, such as raising the CRR or bank rate, would limit the money supply, discouraging investment.
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Monetary Policy of the Central Bank
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अध्याय 9: Central Banks - QUESTIONS [पृष्ठ २१२]

APPEARS IN

गोयल ब्रदर्स प्रकाशन Economic Applications [English] Class 10 ICSE
अध्याय 9 Central Banks
QUESTIONS | Q 11. | पृष्ठ २१२
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 8 Central Bank
Exercise | Q 11. | पृष्ठ १५७

संबंधित प्रश्न

The difference between the value of security and the amount of loan sanctioned against these securities is known as:


During deflation, the Central Bank usually ______.


The process of buying and selling of securities by the central bank of a country is known as ______.


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): Bank rate is a quantitative instrument of monetary policy.

Reason (R): During inflation, RBI reduces the bank rate.


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.


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.


Which of the following statements are correct and which are incorrect? Give reasons.

  1. Central bank is a currency authority.
  2. Bank rate is a qualitative method of credit control.
  3. Quantitative methods regulate direction of credit.
  4. Bank rate is the rate at which commercial banks give loans to the public.
  5. Central bank should sell government securities when credit is to be expanded.

Who controls the credit supply in an economy?


What do you mean by credit control?


What is meant by Legal Reserve Ratio?


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