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प्रश्न
Who controls the credit supply in an economy?
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उत्तर
A country's central bank controls the credit supply in its economy. The central bank regulates credit availability using a variety of monetary policy tools, including the bank rate, open market operations, reserve requirements (such as the Cash Reserve Ratio and Statutory Liquidity Ratio), and qualitative methods (such as credit rationing), that affect the money supply, interest rates, and overall economic activity.
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संबंधित प्रश्न
The central bank controls credit _____ .
______ is a quantitative method of credit control.
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 :
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.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Margin Requirements.
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?
Define moral persuasion.
