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प्रश्न
Which of the following is a selective/qualitative method of credit control.
पर्याय
Bank Rate
Cash Credit Ratio
Open Market Operations
Moral suasion
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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
Define bank rate.
Which of the following is not a quantitative method of credit control?
In order to encourage investment in the economy, the central bank may ______.
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 |
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 :
Define the term Statutory Liquidity Ratio.
Define the following term:
Cash Reserve Ratio.
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 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.
