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प्रश्न
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
उत्तर
- Selling government-endorsed securities to the general public is called Open Market Operations (OMO).
- The central bank controls inflation by reducing economic liquidity by selling securities.
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संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control.
The rate of which commercial banks borrow from the Central Bank is the:
The central bank controls credit _____ .
Bank rate is the rate at which:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Differentiate between quantitative and qualitative methods of credit control.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
What are quantitative methods of credit control?
Describe two quantitative credit control measures of the Central Bank.
