(English Medium) ICSE Class 10 - CISCE Question Bank Solutions

Define the following term:

Margin Requirements.

Briefly explain the following credit control method adopted by the Central Bank.

Publicity

Briefly explain the following credit control methods adopted by the Central Bank.

Moral persuasion 

Central bank is the lender of the last resort. Explain.

The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.

Explain the following function of the central bank of a country. 

Fixation of margin requirement on secured loans.

Which of the following statements are correct and which are incorrect? Give reasons.

1. Central bank is a currency authority.
2. Bank rate is a qualitative method of credit control.
3. Quantitative methods regulate direction of credit.
4. Bank rate is the rate at which commercial banks give loans to the public.
5. Central bank should sell government securities when credit is to be expanded.

Who controls the credit supply in an economy?

What is this policy called that controls the credit supply in an economy?

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. 

What do you mean by credit control?

What are quantitative methods of credit control?

Which are qualitative methods of credit control?

What is meant by Legal Reserve Ratio?

Define moral persuasion.

Give an example of margin requirements.

Describe two quantitative credit control measures of the Central Bank.

Inflation is a state of rising prices.

Law of supply does not apply to ______.