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प्रश्न
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
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उत्तर
Increasing the lending rate to commercial banks is referred to as increasing the Bank Rate. By increasing the bank rate, the cost of borrowing for commercial banks rises, leading to higher lending costs for businesses and consumers. This reduces the effects of inflation.
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संबंधित प्रश्न
______ is a quantitative method of credit control.
Bank rate is the rate at which:
The process of buying and selling of securities by the central bank of a country is known as ______.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
Who controls the credit supply in an economy?
What is this policy called that controls the credit supply in an economy?
Which are qualitative methods of credit control?
What is meant by Legal Reserve Ratio?
