Advertisements
Advertisements
प्रश्न
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 :
पर्याय
Repo rate
Open market operation
Cash reserve ratio
Margin requirement
Advertisements
उत्तर
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank : Margin requirement.
Explanation:
- The bank rate is a quantitative tool the central bank uses to manage the money supply.
- Similarly, margin requirements are qualitative credit control measures, whereas repo rates, open market operations, and cash reserve ratios are quantitative.
APPEARS IN
संबंधित प्रश्न
Define qualitative credit control policy of the RBI.
Bank rate is the rate at which:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.
Reason (R): An increase in cash reserve ratio reduces the excess reserves of commercial banks and hence limits their credit creating power.
What is meant by open market operations?
Define the following term:
Margin Requirements.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
Which are qualitative methods of credit control?
Define moral persuasion.
Describe two quantitative credit control measures of the Central Bank.
