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Question
______ is a quantitative method of credit control.
Options
Bank rate
Cash reserve ratio
Credit rationing
Both Bank rate and Cash reserve ratio
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Solution
Both Bank rate and Cash reserve ratio is a quantitative method of credit control.
Explanation:
The Bank Rate and the Cash Reserve Ratio (CRR) are quantitative methods of credit control used by the central bank to regulate the total money supply in the economy.
RELATED QUESTIONS
The rate of which commercial banks borrow from the Central Bank is the:
The central bank controls credit _____ .
Which of the following is not a quantitative method of credit control?
During inflation, the central bank usually:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Define the term Statutory Liquidity Ratio.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Differentiate between quantitative and qualitative methods of credit control.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
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.
What is the credit supply policy in an economy called?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What do you mean by credit control?
What is meant by Legal Reserve Ratio?
