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प्रश्न
The process of buying and selling of securities by the central bank of a country is known as ______.
विकल्प
Margin Requirement
Open Market Operations
Cash Reserve Ratio
Statutory Liquidity Ratio
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उत्तर
The process of buying and selling of securities by the central bank of a country is known as Open Market Operations.
Explanation:
Open Market Operations (OMO) is when the central bank buys and sells government assets in the open market to control the economy's money supply. When the central bank buys assets, it adds money to the banking system, improving liquidity. When it sells securities, it removes funds from the system, lowering liquidity.
संबंधित प्रश्न
Define bank rate.
Which of the following is a selective/qualitative method of credit control?
The rate of which commercial banks borrow from the Central Bank is the:
Explain how credit rationing helps to control credit in an economy.
Which of the following is not a quantitative method of credit control?
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | 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.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Differentiate between quantitative and qualitative methods of credit control.
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
What is the credit supply policy in an economy called?
What are quantitative methods of credit control?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
