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प्रश्न
Give any two reasons as to why a country needs a central bank.
Mention two reasons for setting up the central bank (or the Reserve Bank of India).
With reference to the central bank of a country.
State two reasons for the need of a Central Bank in a country.
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उत्तर
Two reasons for setting up the Central Bank are:
- The Central Bank is set up to control the supply of money and credit in the country.
- Every central bank is set up to control the entire banking system of a country.
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संबंधित प्रश्न
The rate of which commercial banks borrow from the Central Bank is the:
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
During deflation, the Central Bank usually ______.
______ is a quantitative method of credit control.
Which of the following is not 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:
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 :
What is meant by open market operations?
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Cash Reserve Ratio.
Central bank is the lender of the last resort. Explain.
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.
Who 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.
What do you mean by credit control?
Define moral persuasion.
Describe two quantitative credit control measures of the Central Bank.
