हिंदी

Bank rate is the rate at which: - Economic Applications

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प्रश्न

Bank rate is the rate at which:

विकल्प

  • Commercial banks purchase government securities from the central bank.

  • Commercial banks can take loans from the central bank for a short term.

  • Short-term loans are given by commercial banks.

  • Commercial bank take loans from the public.

MCQ

उत्तर

Short-term loans are given by commercial banks.

Explanation:

The bank rate is the rate at which the central bank lends money to commercial banks on a short-term basis. Changes in the bank rate can affect the cost of borrowing for commercial banks, which in turn influences the interest rates they give their customers.

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Monetary Policy of the Central Bank
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 9: Central Banks - QUESTIONS [पृष्ठ २१२]

APPEARS IN

गोयल ब्रदर्स प्रकाशन Economic Application [English] Class 10 ICSE
अध्याय 9 Central Banks
QUESTIONS | Q 13. | पृष्ठ २१२
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 8 Central Bank
Exercise | Q 13. | पृष्ठ १५७

संबंधित प्रश्न

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:


Define qualitative credit control policy of the RBI.


Explain how credit rationing helps to control credit in an economy.


______ is a quantitative method of credit control.


Which of the following is not a quantitative method of credit control?


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 : 


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 following term:

Margin Requirements.


Briefly explain the following credit control methods adopted by the Central Bank.

Moral persuasion 


Central bank is the lender of the last resort. Explain.


The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.


Which of the following statements are correct and which are incorrect? Give reasons.

  1. Central bank is a currency authority.
  2. Bank rate is a qualitative method of credit control.
  3. Quantitative methods regulate direction of credit.
  4. Bank rate is the rate at which commercial banks give loans to the public.
  5. Central bank should sell government securities when credit is to be expanded.

What is this policy called that controls the credit supply in an economy?


Identify the following Credit Control measure undertaken by the Central Bank during inflation.

The Central Bank sells government approved securities to the public.


Identify the following Credit Control measures undertaken by the Central Bank during inflation.

The Central Bank increases the rate at which it lends to the Commercial Bank. 


What are quantitative methods of credit control?


What is meant by Legal Reserve Ratio?


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