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State Whether the Following Statement is True Or False. Bank Rate is the Selective Credit Control Measure Used by the Central Bank of the Country. - Economics

MCQ
True or False

State whether the following statement is TRUE or FALSE.

Bank Rate is the selective credit control measure used by the Central Bank of the country. 

Options

  • True

  • False

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Solution

Bank Rate is the selective credit control measure used by the Central Bank of the country. - False

Explanation: Bank Rate refers to the rate of interest at which the central bank lends money to the commercial banks or the rate at which the central bank discounts the bills of the commercial banks. This is classified as a quantitative measure of credit control since it directly affects the market interest rate and thereby the money supply in the economy.

Concept: Repo Rate and Reverse Repo Rate
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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 13 Central Banking
Exercise | Q 3.3 | Page 121
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