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प्रश्न
Bank rate is the rate at which:
पर्याय
Commercial banks purchase government securities from the central bank.
Commercial banks can take loans from the central bank for a short term.
Short-term loans are given by commercial banks.
Commercial bank take loans from the public.
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उत्तर
Short-term loans are given by commercial banks.
Explanation:
The bank rate is the rate at which the central bank lends money to commercial banks on a short-term basis. Changes in the bank rate can affect the cost of borrowing for commercial banks, which in turn influences the interest rates they give their customers.
संबंधित प्रश्न
Define bank rate.
Briefly explain two qualitative methods of credit control adopted by this institution.
The rate of which commercial banks borrow from the Central Bank is the:
During deflation, the Central Bank usually ______.
The central bank controls credit _____ .
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 |
What is meant by open market operations?
Differentiate between quantitative and qualitative methods of credit control.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
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.
Describe two quantitative credit control measures of the Central Bank.
