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प्रश्न
The rate of which commercial banks borrow from the Central Bank is the:
पर्याय
Bank rate
Deposit rate
Lending rate
None of these
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उत्तर
Bank rate
Explanation:
The bank rate is the rate at which commercial banks borrow from the central bank. It is defined as "the rate at which the central bank is ready to rediscount the first-class securities and bills presented before it by the commercial banks." Central banks employ the bank rate as a monetary policy tool to influence the economy.
संबंधित प्रश्न
During deflation, the Central Bank usually ______.
The central bank controls credit _____ .
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.
Give any two reasons as to why a country needs a central bank.
What is meant by open market operations?
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.
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?
What are quantitative methods of credit control?
Describe two quantitative credit control measures of the Central Bank.
