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प्रश्न
Who controls the credit supply in an economy?
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उत्तर
A country's central bank controls the credit supply in its economy. The central bank regulates credit availability using a variety of monetary policy tools, including the bank rate, open market operations, reserve requirements (such as the Cash Reserve Ratio and Statutory Liquidity Ratio), and qualitative methods (such as credit rationing), that affect the money supply, interest rates, and overall economic activity.
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संबंधित प्रश्न
Define bank rate.
The rate of which commercial banks borrow from the Central Bank is the:
Explain how credit rationing helps to control credit in an economy.
______ is a quantitative method of credit control.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Define the following term:
Cash Reserve Ratio.
What is this policy called that controls the credit supply in an economy?
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.
What do you mean by credit control?
Give an example of margin requirements.
