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प्रश्न
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 :
विकल्प
Repo rate
Open market operation
Cash reserve ratio
Margin requirement
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उत्तर
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank : Margin requirement.
Explanation:
- The bank rate is a quantitative tool the central bank uses to manage the money supply.
- Similarly, margin requirements are qualitative credit control measures, whereas repo rates, open market operations, and cash reserve ratios are quantitative.
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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?
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.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Margin Requirements.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Who controls the credit supply in an economy?
What is the credit supply policy in an economy called?
Define moral persuasion.
