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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
Which of the following is a selective/qualitative method of credit control.
Define qualitative credit control policy of the RBI.
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.
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.
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
Central bank is the lender of the last resort. Explain.
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.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
What are quantitative methods of credit control?
