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प्रश्न
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
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उत्तर
As a custodian of the cash reserves of the commercial banks, the central bank maintains the cash reserves of the commercial banks. Every commercial bank has to keep a certain percentage of its cash reserves with the central bank by law.
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संबंधित प्रश्न
The rate of which commercial banks borrow from the Central Bank is the:
Bank rate is the rate at which:
During inflation, the central bank usually:
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.
What is meant by open market operations?
Define the term Statutory Liquidity Ratio.
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?
Give an example of margin requirements.
