Advertisements
Advertisements
प्रश्न
Which of the following is a selective/qualitative method of credit control?
Which of the following is a selective method of credit control?
पर्याय
Bank Rate
Cash Credit Ratio
Open Market Operations
Moral suasion
Advertisements
उत्तर
Moral suasion
Explanation:
The Central Bank employs a qualitative form of credit regulation known as moral suasion. It refers to the counsel, suggestions, and persuasion that the Central Bank uses to persuade member banks to obey its, directives to restrict credit supply. The RBI is making a moral appeal to commercial banks, encouraging them to refrain from certain types of loan operations.
संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
The rate of which commercial banks borrow from the Central Bank is the:
The difference between the value of security and the amount of loan sanctioned against these securities 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 |
During inflation, the central bank usually:
Give any two reasons as to why a country needs a central bank.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What are quantitative methods of credit control?
