Advertisements
Advertisements
प्रश्न
Mention two ways in which the Reserve Bank of India assists the commercial banks.
Advertisements
उत्तर
The Reserve Bank of India (RBI) assists commercial banks in two main ways:
- Lender of Last Resort: During times of financial difficulties, the RBI provides funds to commercial banks to ensure liquidity and stability in the banking system.
- Monetary Policy Regulation: The RBI manages interest rates and the money supply, which have a direct impact on commercial bank operations and help to ensure economic stability.
APPEARS IN
संबंधित प्रश्न
Which of the following is not a function of the Central Bank?
Explain the functions of the RBI with respect to the following:
- Custodian of foreign exchange reserves.
- Monopoly of note issue.
- Clearing house facility.
- Banker and fiscal agent to the government.
Assertion (A): Central bank as a banker to the government, works as a custodian of foreign exchange reserves.
Reason (R): The Central bank acts as a Clearing house for the transfer and settlement of mutual claims of commercial banks.
The RBI settles claims of other commercial banks by a process of book entries. It helps to stabilize the banking system in the economy. Which function of the Central bank is explained here.
- In the realm of economic development, how does the role of entrepreneurs impact the overall growth and stability of a nation.
Which of the following is/are the function(s) of central bank.
Give two major functions of the central bank of our country.
How does the central bank act as a lender as the last resort?
How is Bank rate altered to correct a depression in an economy?
Explain the banker’s bank function of the Central Bank.
