Advertisements
Advertisements
प्रश्न
Explain the role of the Reserve Bank of India as the “lender of last resort”.
उत्तर
Central Bank is the apex bank which controls the entire banking system of a country. It has the sole authority to issue notes in that country. It also acts as a banker to the government and controls the supply of money in the country. The Central bank provides financial assistance to commercial banks by rediscounting eligible bills of exchange. When commercial banks do not get loan facilities from any other sources, they approach the Central Bank as a last resort. The Central Bank advances loans to such banks against approved securities. Thus, the Central Bank acts as a ‘lender of the last resort’.
APPEARS IN
संबंधित प्रश्न
The RBI was nationalised in the year 1935.
Meaning and Definition of Central bank?
Give reason or explain the following.
Cash reserve ratio (CRR) affects the lending capacity of banks.
Match the following Group ‘A’ with Group ‘B’
| Group A | Group B |
| (a) Electricity | (1) Inelastic demand |
| (b) Complementary goods | (2) Share brokers |
| (c) Pension | (3) Elastic demand |
| (d) D - mat account | (4) Composite demand |
| (e) Central Bank | 5) Transfer income |
| (6) Primary function of Commercial Banks | |
| (7) ATM facility | |
|
(8) Apex banking institution
|
Give reason or explain the following statement:
Central Bank acts as a lender of the last resort.
Explain, with reason, whether you Agree or Disagree with the following statement :
Central Bank is a profit making institution ?
State whether the following statements are True or False:
Central Bank acts as a lender of the last resort.
Define or explain the concept of Lender of the last resort .
Fill in the blank with appropriate alternatives given below
Reserve Bank of India was established in _____________.
Match the following:
| Group A | Group B |
| 1. Central bank | a. Quantitative measure of credit |
| 2. Clearing house | b. Apex banking institution |
| 3. Credit control | c. Deliberate buying and selling of government securities |
| 4. Direct action | d. Selective method of credit control |
| 5. Open market operations | e. Central bank |
| f. Government | |
| g. S.L.R. (Statutory Liquidity Ratio) |
Define or Explain the following concept.
Prof. Samuelson's definition of Central Bank
Define or Explain the following concept.
Cash Reserve Ratio
Give reason or explain.
A Central Bank may take 'Direct Action' against the defaulting commercial banks.
Write short note on:
Definition of a Central Bank
State with reason whether you agree or disagree with the following statement.
Central Bank is a profit-making institution.
Choose the Correct Answer.
The Central bank of India is ______
