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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
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
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 ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | Bank rate |
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 :
Give any two reasons as to why a country needs a central bank.
What is meant by open market operations?
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
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.
What is this policy called that 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 are quantitative methods of credit control?
Which are qualitative methods of credit control?
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
