Advertisements
Advertisements
प्रश्न
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
Advertisements
उत्तर
- Under this method, the central bank adopts the policy of persuasion and moral influence on the commercial banks in order to get them to fall in line with its policy.
- The central bank frequently announces its policy and urges the commercial banks to adopt it.
- This is exercised through letters, discussions and directives to the banks.
- The member banks generally do not ignore the advice of the central bank.
APPEARS IN
संबंधित प्रश्न
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
Which of the following is not a quantitative method of credit control?
During inflation, the central bank usually:
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.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Central bank is the lender of the last resort. Explain.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
What is the credit supply policy in an economy called?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What is meant by Legal Reserve Ratio?
