Advertisements
Advertisements
प्रश्न
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
Advertisements
उत्तर
- Selling government-endorsed securities to the general public is called Open Market Operations (OMO).
- The central bank controls inflation by reducing economic liquidity by selling securities.
APPEARS IN
संबंधित प्रश्न
Define bank rate.
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
Explain how credit rationing helps to control credit in an economy.
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 ______.
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): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Give any two reasons as to why a country needs a central bank.
Which are qualitative methods of credit control?
