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प्रश्न
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
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उत्तर
- A country's central bank decides the margin requirement for secured loans as part of its credit control system. This is the percentage of the collateral's value that a borrower must provide as security for a loan.
- The central bank can limit the quantity of credit available to borrowers by adjusting the margin requirement.
- A greater margin requirement requires borrowers to produce more collateral, restricting the amount they can borrow.
- This enables the central bank to control the flow of credit in the economy, affecting inflation, consumption, and investment.
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संबंधित प्रश्न
Define bank rate.
Which of the following is a selective/qualitative method of credit control.
Define qualitative credit control policy of the RBI.
In order to encourage investment in the economy, the central bank may ______.
The process of buying and selling of securities by the central bank of a country is known as ______.
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Central bank is the lender of the last resort. Explain.
What do you mean by credit control?
