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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
Briefly explain two qualitative methods of credit control adopted by this institution.
Explain how credit rationing helps to control credit in an economy.
During deflation, the Central Bank usually ______.
Bank rate is the rate at which:
The process of buying and selling of securities by the central bank of a country is known as ______.
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.
Define the term Statutory Liquidity Ratio.
Define the following term:
Cash Reserve Ratio.
Give an example of margin requirements.
Describe two quantitative credit control measures of the Central Bank.
