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प्रश्न
Explain how open market operations are helpful in controlling credit creation.
उत्तर
Open market operations refer to the sale and purchase of government securities and bonds by the Central Bank. While controlling inflation, the Central Bank sells government securities to the public through the banks. This results in the transfer of a part of bank deposits to the Central Bank account and reduces credit creation capacity of commercial banks.
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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.
Central Bank has the sole power of issuing currency notes.
Write short answer for the following question :
Explain qualitative meansures of credit contorl adopted by the Central Bank.
Define or Explain the Bank Ratev ?
State whether the following statements are True or False with reason:
Due to clearing house of the Central Bank cash money is saved.
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Regulation of Consumer Credit is a quantitative credit control measure of Central Bank.
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Issuing Directives
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Central Bank's measure of regulation of consumer credit
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What are the various measures of quantitative credit control?
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Discuss two qualitative methods of credit control.
Answer the following question.
Elaborate any two instruments of Credit Control, as exercised by the Reserve Bank of India.
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Explain the "varying reserve requirements" method of credit control by the central bank.
Distinguish between 'Qualitative and Quantitative tools' of credit control as may be used by a Central Bank.
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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 |
