Advertisements
Advertisements
प्रश्न
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
विकल्प
Credit rationing
Margin requirement
Direct Action
Regulation of consumer credit
Advertisements
उत्तर
Margin requirement
Explanation:
The disparity between the security's value and the approved loan amount against said securities is referred to as margin requirements. This serves as one of the qualitative instruments for credit control employed by the central bank.
संबंधित प्रश्न
Which of the following is not a quantitative method of credit control?
Bank rate is the rate at which:
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.
Give any two reasons as to why a country needs a central bank.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
Define moral persuasion.
Give an example of margin requirements.
