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प्रश्न
Give reason or explain the following statement:
Central Bank acts as a lender of the last resort.
उत्तर
Central Bank acts as a lender of the last resort.
Central Bank acts as a lender of the last resort.
Prof. Hawtrey defines, "Central Bank is that which is the lender of the last resort."
Central Bank is the apex or the supreme monetary and banking authority and occupies a pivotal position in the monetary and banking structure of the country. It is the undisputed leader of the money market.
The commercial banks operate on the basis of low cash reserve system. If there is a great demand for cash by the depositors, even a well managed commercial bank can run into difficulty. This is because, with low cash reserves, it will not be able to meet a sudden and large demand for cash. The Central Bank comes to their rescue at such times. It is the ultimate source of financial assistance to commercial banks. Just as people go to commercial banks when they want loans, commercial banks go to the Central Bank of the country in times of their financial difficulties. Thus, `the lender of the last resort' function of the Central
Bank helps to control panic and infuses confidence among the banks as well as the public. Hence, during the financial difficulties or crisis, commercial banks can always depend upon the Central Bank for the required assistance.
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संबंधित प्रश्न
The RBI was nationalised in the year 1935.
Meaning and Definition of Central bank?
There is no difference between the Central bank and a commercial bank.
The central bank can increase availability of credit by: (Choose the correct alternative)
(a) Raising repo rate
(b) Raising reverse repo rate
(c) Buying government securities
(d) Selling government securities
Explain the role of the Reserve Bank of India as the “lender of last resort”.
What is a central bank?
Fill in the blank using proper alternative given in the bracket:
......................... is the apex body of the monetary and banking system of the nation’s economy.
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
|
Match the following:
| Group A | Group B |
| a. Demand and Price | (1) Interest |
| b. Stock | (2) Stock |
| c. Reward of Capital | (3) Reserve Bank of India |
| d. Unemployment allowance | (4) Bank of India |
| e. Central Bank | (5) Direct relation |
| (6) Potential Supply | |
| (7) Transfer Income | |
| (8) Inverse relation |
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.
State whether the following statement is True or False with reason:
Central Bank works for profit.
Rewrite the following sentences by using proper substitute given in the bracket:
__________ has monopoly to issue the currency notes.
Fill in the blanks with appropriate alternatives given in the bracket.
To increase credit creation Central Bank __________ the debentures.
Fill in the blank with appropriate alternatives given below
____________ is the apex body of the monetary and banking systems of the nation's economy.
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.
Open Market Operation
Define or Explain the following concept.
Cash Reserve Ratio
Give reason or explain.
As a banker to the government, the Central Bank transfers government funds.
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
Fill in the blank using appropriate alternatives given below
The e - banking facility is provided through _________
In order to encourage investment in the economy, the Central Bank may ______.
Choose the Correct Answer.
The Central bank of India is ______
Choose the Correct Answer.
Which of the following is not a function of a central bank?
Briefly explain about Central Bank.
Central Bank is an ______.
