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प्रश्न
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 lender of the last resort.
उत्तर
- As a banker to the banks, the central bank acts as the lender of the last resort. In other words, in case the commercial banks fail to meet their financial requirements from other sources, they can, as a last resort, approach the central bank for loans and advances.
- Thus, it saves banks from possible failure and banking system from a possible breakdown.
संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control.
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
Which of the following is not a quantitative method of credit control?
Bank rate is the rate at which:
Give any two reasons as to why a country needs a central bank.
Define the term Statutory Liquidity Ratio.
Define the following term:
Margin Requirements.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
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?
