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प्रश्न
Which of the following is a selective/qualitative method of credit control.
विकल्प
Bank Rate
Cash Credit Ratio
Open Market Operations
Moral suasion
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उत्तर
Moral suasion
Explanation:
The Central Bank employs a qualitative form of credit regulation known as moral suasion. It refers to the counsel, suggestions, and persuasion that the Central Bank uses to persuade member banks to obey its, directives to restrict credit supply. The RBI is making a moral appeal to commercial banks, encouraging them to refrain from certain types of loan operations.
संबंधित प्रश्न
Define qualitative credit control policy of the RBI.
Explain how credit rationing helps to control credit in an economy.
During deflation, the Central Bank usually ______.
Which of the following is not a quantitative method of credit control?
In order to encourage investment in the economy, the central bank may ______.
Bank rate is the rate at which:
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 |
Differentiate between quantitative and qualitative methods of credit control.
Central bank is the lender of the last resort. Explain.
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.
