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प्रश्न
What is this policy called that controls the credit supply in an economy?
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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, stabilise the currency, and affect interest rates, all of which contribute to economic activity and financial stability.
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संबंधित प्रश्न
______ is a quantitative method of credit control.
In order to encourage investment in the economy, the central bank may ______.
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): 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.
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.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
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.
Give an example of margin requirements.
