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प्रश्न
Briefly explain the following credit control method adopted by the Central Bank.
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उत्तर
- The 'Central Bank' publishes weekly and monthly reports, review the statement of assets-liabilities and balance sheets for the guidance and reference of commercial banks.
- These publications provide the latest information of the money market, public finance activities, trade and industries.
- From this data, the commercial banks can plan and adjust their credit activities.
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संबंधित प्रश्न
During deflation, the Central Bank usually ______.
______ is 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:
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.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
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.
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
Give an example of margin requirements.
