Advertisements
Advertisements
Question
Define moral persuasion.
Advertisements
Solution
Moral persuasion is a method of credit control employed by the Central Bank. It is a method of request and advice to the commercial banks by the Central Bank.
APPEARS IN
RELATED QUESTIONS
Define bank rate.
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:
Explain how credit rationing helps to control credit in an economy.
In order to encourage investment in the economy, the central bank may ______.
The process of buying and selling of securities by the central bank of a country is known as ______.
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 :
During inflation, the central bank usually:
Define the term Statutory Liquidity Ratio.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Cash Reserve Ratio.
Define the following term:
Margin Requirements.
Central bank is the lender of the last resort. Explain.
What is this policy called that controls the credit supply in an economy?
Describe two quantitative credit control measures of the Central Bank.
