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प्रश्न
Explain how ‘bank rate' is helpful in controlling credit creation?
उत्तर
Bank rate is the rate at which the central bank provides credit to commercial banks. An increase or decrease in the bank rate leads to an increase or decrease in the market rate of interest. Thereby the cost of credit changes in the market. During inflation, increase in the bank rate increases the cost of capital which reduces the flow of credit.
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संबंधित प्रश्न
Explain how 'margin requirements' are helpful in controlling credit creation?
Explain the 'currency authority' function of a central bank.
Explain with reasons, whether you agree or disagree with the following statement
Cash reserve ratio is a quantitative measure of credit control.
Write short answer for the following question :
Explain qualitative meansures of credit contorl adopted by the Central Bank.
Define or Explain the Bank Ratev ?
Define or explain the following concepts.
Clearing house
Match the following Group ‘A’ with Group ‘B’ :
|
Group ‘A’ |
Group ‘B’ |
||
| (a) |
Economics | (1) | not steady |
| (b) |
Reward of capital | (2) | 1 April, 1935 |
| (c) |
Value of money | (3) | Social science |
| (d) |
Establishment of Central Bank | (4) | Income from commodity tax |
| (e) | Sales tax | (5) | Natural science |
| (6) | Interest |
||
| (7) | 1 April, 1939 | ||
State whether the following statement is TRUE or FALSE.
Credit rationing is quantitative credit control measure of Central bank.
Distinguish between:
Quantitative Credit Control Measures and Qualitative Credit Control Measures
Write short note on:
Issuing Directives
Write short note on:
Central Bank's measure of regulation of consumer credit
Answer the following question:
What are the various measures of quantitative credit control?
Answer the following question:
What are the various measures of qualitative credit control?
Answer the following question.
Elaborate any two instruments of Credit Control, as exercised by the Reserve Bank of India.
Answer the following question.
Explain the "varying reserve requirements" method of credit control by the central bank.
Differentiate between Cash Credit and Outright Loans.
Identify the correctly matched items from Column A to that of Column B:
| Column A | Column B | ||
| 1 | Issue of New Currency Notes | (a) | Government of India |
| 2 | Banker to the Government | (b) | State Bank of India |
| 3 | Controller of Credit | (c) | Reserve Bank of India |
| 4 | SLR | (d) | Development Bank |
