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प्रश्न
What is the credit supply policy in an economy called?
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उत्तर
- Monetary policy refers to the policy that manages an economy’s credit supply.
- The central bank uses this policy to regulate the money supply, limit inflation, stabilize the currency, and affect interest rates, all of which contribute to economic activity and financial stability.
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संबंधित प्रश्न
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
During deflation, the Central Bank usually ______.
Bank rate is the rate at which:
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 :
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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?
Define moral persuasion.
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
