Advertisements
Advertisements
प्रश्न
Who controls the credit supply in an economy?
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control.
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
Define qualitative credit control policy of the RBI.
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?
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
What is this policy called that controls the credit supply in an economy?
What do you mean by credit control?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
