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प्रश्न
The central bank controls credit _____ .
पर्याय
Through quantitative methods only.
Through qualitative methods only.
Both through quantitative methods and through qualitative methods.
Neither through quantitative methods nor through qualitative methods.
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उत्तर
Both through quantitative methods and through qualitative methods
Explanation:
The central bank uses a combination of both methods to effectively control credit in the economy.
संबंधित प्रश्न
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
Define qualitative credit control policy of the RBI.
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 |
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.
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.
What is meant by open market operations?
Define the term Statutory Liquidity Ratio.
Define the following term:
Cash Reserve Ratio.
Define the following term:
Margin Requirements.
What is the credit supply policy in an economy called?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
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.
What do you mean by 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.
