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प्रश्न
What is the credit supply policy in an economy called?
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उत्तर
- Monetary policy refers to the policy that manages an economy’s credit supply.
- The central bank uses this policy to regulate the money supply, limit inflation, stabilize the currency, and affect interest rates, all of which contribute to economic activity and financial stability.
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संबंधित प्रश्न
Explain how credit rationing helps to control credit in an economy.
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 :
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.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Central bank is the lender of the last resort. Explain.
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.
What is meant by Legal Reserve Ratio?
Define moral persuasion.
Describe two quantitative credit control measures of the Central Bank.
