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प्रश्न
The rate of which commercial banks borrow from the Central Bank is the:
विकल्प
Bank rate
Deposit rate
Lending rate
None of these
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उत्तर
Bank rate
Explanation:
The bank rate is the rate at which commercial banks borrow from the central bank. It is defined as "the rate at which the central bank is ready to rediscount the first-class securities and bills presented before it by the commercial banks." Central banks employ the bank rate as a monetary policy tool to influence the economy.
संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control?
Define qualitative credit control policy of the RBI.
The central bank controls credit _____ .
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 :
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.
Differentiate between quantitative and qualitative methods of credit control.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
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.
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
