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Economic Applications
Define qualitative credit control policy of the RBI.
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Monetary Policy of the Central Bank
Concept: Monetary Policy of the Central Bank
Explain how credit rationing helps to control credit in an economy.
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Monetary Policy of the Central Bank
Concept: Monetary Policy of the Central Bank
Which of the following is not a function of the Central Bank?
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Functions of a Central Bank
Concept: Functions of a Central Bank
During deflation, the Central Bank usually ______.
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Monetary Policy of the Central Bank
Concept: Monetary Policy of the Central Bank
Explain the functions of the RBI with respect to the following:
- Custodian of foreign exchange reserves.
- Monopoly of note issue.
- Clearing house facility.
- Banker and fiscal agent to the government.
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Functions of a Central Bank
Concept: Functions of a Central Bank

Which function of RBI is indicated by the above image?
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Functions of a Central Bank
Concept: Functions of a Central Bank

The Central bank is having the authority to regulate the amount of money supply in the economy.
Based on the above explain the following.
- Credit Rationing
- CRR
- Regulation of Margin Requirements
- Bank Rate
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Functions of a Central Bank
Concept: Functions of a Central Bank
Differentiate between quantitative and qualitative methods of credit control.
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Monetary Policy of the Central Bank
Concept: Monetary Policy of the Central Bank
Explain the banker’s bank function of the Central Bank.
Chapter: [16] Banking : Commercial Banks and Central Bank
Concept: Functions of a Central Bank
Concept: Functions of a Central Bank
