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प्रश्न
In order to encourage investment in the economy, the central bank may ______.
पर्याय
Reduce cash reserve ratio
Increase cash reserve ratio
Sell government recruiters in open market
Increase in bank rate
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उत्तर
In order to encourage investment in the economy, the central bank may Reduce cash reserve ratio.
Explanation:
- The central bank reduces the cash reserve ratio (CRR), allowing commercial banks to keep fewer reserves while having greater funds to lend.
- This boosts the economy's money supply and encourages investment by providing more loans to businesses and consumers at lower interest rates.
- The other options, such as raising the CRR or bank rate, would limit the money supply, discouraging investment.
संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
The rate of which commercial banks borrow from the Central Bank is the:
The central bank controls credit _____ .
Which of the following is not 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 ______.
What is meant by open market operations?
Define the term Statutory Liquidity Ratio.
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.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
What is meant by Legal Reserve Ratio?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
